Tesla Model 3, Model Y Get Price Increases
【Summary】Base versions of the all-electric vehicles go up by $2,000, while the range-topping Performance models are now $1,000 more expensive than before.
Unlike nearly every other automaker that sells vehicles in the U.S., Tesla changes the prices of its electric vehicles on a whim. Tesla has been changing the prices of the Model 3 and Model Y throughout 2021 and has decided to change the prices of the electric vehicles again.
Large Increases For Base Models
Before we get into the changes, let's recap the prices for the old Model 3 and Model Y. Before the most recent changes, shoppers could purchase a Model 3 Standard Range Plus model for $39,990. The base Model Y Long Range Dual Motor used to cost $52,990. Going forward, the Model 3 Standard Range now costs $41,990, while the Model 3 Performance is $1,000 more. The Long Range AWD model hasn't increased in pricing and continues to start at $49,990. As, InsideEVs points out, Tesla used to offer the Model 3 Standard Range Plus model for $36,990. With that price in mind, the sedan is $5,000 more than before.
When it comes to the Model Y, the electric crossover has also gone up by $2,000. The Long Range Dual Motor model now starts at $54,990, while the Model Y Performance costs $61,990. The outlet claims that the Model Y Performance used to cost $50,990 in the first part of the year, so the electric crossover has actually gone up by $4,000.
InsideEVs claims that Tesla CEO Elon Musk, and a few other unnamed sources, claim that the price increase is directly related to the global chip shortage that's currently ongoing. Other automakers haven't raised the prices of their new vehicles, though their dealerships certainly have. Instead, reports have indicated that other automakers have had a difficult time producing vehicles. We haven't heard anything about price increases straight from the factory yet. Since Tesla sells vehicles directly to shoppers, it can change the prices of its vehicles whenever it wants.
More Price Increases Expected
While pricing for the Model 3 and Model Y have gone up, Tesla hasn't announced any changes to the Model S. The large sedan saw its price go up earlier this August when it went from $79,990 to $84,990 and then to $89,990 in a span of roughly a month. The Model X also went up in price earlier this year, as it went from $89,990 to $94,990.
Reports indicate that the chip shortage is expected to last until 2023. Prices of new cars aren't expected to go up, but used car prices are reported to stay high until 2024 when automakers finally get back up to speed with their production. Seeing as how the chip shortage is expected to continue for the next few years, we wouldn't be surprised to see Tesla raise the prices of its vehicles again in the near future.
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
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