Tesla to raise Model Y prices
$1,000 boost scheduled to commence April 1
Tesla’s best-selling vehicles are about to get slightly more expensive.
Tesla’s website said prices on its Model Y SUV, the company’s most popular model, will rise by about $1,000 in April in the United States.
“Prices will increase by $1,000 for all Model Y trims on April 1,” the Tesla website stated.
Tesla has already adjusted its Model Y prices several times this year. In February, the company slashed prices for the month on certain Model Y models, which cost $42,990 for the rearwheel drive model and $47,990 for the long-range vehicle. In March, those prices rose about $1,000 to $43,990 and $48,990, respectively.
The February price cuts were to encourage vehicle purchases in the middle of winter when “most people don’t love to buy cars,” according to a post from Tesla CEO Elon Musk.
Price wars and growth slowdowns
Tesla prices have been on a roller coaster in recent years amid an electric vehicle market price war. Some legacy automakers have scaled back growth plans in the U.S. electric vehicle market, but international competition continues to heat up.
The Austin-based automaker has slashed prices in recent years in part to keep competitive. The cuts also helped qualify some of Tesla’s vehicles for a $7,500 federal tax credit on their purchase under the Inflation reduction Act.
But the company has warned its growth will slow down this year. In a January report to investors, Tesla said it sold 1.8 million vehicles in 2023, but it said its growth rate in 2024 could be “notably lower” as Tesla works on launching a new vehicle. The company said it was “between two major growth waves.”
Musk has repeatedly warned of difficulties scaling up production of the Austin-made Cybertruck, its current newest vehicle on the market, which the company began delivering last fall.
International competition
Competition has revved up with Chinese automaker BYD, which became the world’s largest seller of electric vehicles in the fourth quarter when it sold 526,000 vehicles compared with Tesla’s 485,000. It marked the first time the Chinese automaker was able to unseat Tesla by quarterly sales, but Tesla still sold more electric vehicles overall in 2023.
On the January call, Musk called for tariffs or trade barriers to be put in place so that Chinese automakers don’t overtake other car companies.