Monday, July 15, 2024
NewsThe Price of the Tesla Model Y Increases by $500 Less than...

The Price of the Tesla Model Y Increases by $500 Less than Two Weeks After a Big Cut

Tesla has increased the price of the entry-level Model Y by $500 less than two weeks after having cut it by $13,000.

  • Tesla recently announced a 20% price cut for all of its models, including the entry-level Model Y.

  • This version of the electric SUV now costs $500 more in the United States.

  • This could be a strategy to increase sales in the short term.

Tesla has now increased the price of the Model Y Long Range by $500 in the United States, less than two weeks after having cut 20% off of the price tag.

Tesla is known to regularly modify the prices of its vehicles, but this latest move is still somewhat surprising.

Indeed, the automaker announced a large price cut less than two weeks ago that had the goal of making Tesla vehicles more competitive against newer EVs, especially in China.

Since Tesla is the automaker that makes the most profit on every car sold, up to eight times as much as Toyota, it could afford to lower its prices significantly, up to 20% in the case of the entry-level Model Y.

Doing so removed $13,000 from the starting price of the electric SUV, which was now offered at $52,990 in the US.

This new price was not in effect for a long time, however, since a $500 increase was applied on Monday.

Raising the price so soon after a large price cut is unusual, which is why many believe this to be a deliberate strategy.

Indeed, Tesla could have increased the price slightly in order to pressure people who were still on the fence into buying a Model Y by showing that the price could continue to increase further.

This makes sense considering that the automaker currently has more inventory than usual for its smallest crossover, namely around 200 vehicles around the country.

This is likely why deliveries times of the Model Y for new buyers range between one and three months which is much shorter than only a few months ago.

Tesla could also already be going back to its previous strategy of incrementally increasing the prices of its models every few weeks or months until another cut is needed to remain competitive.

For the moment, prices for the Model Y Performance in the US and the entire Model Y lineup in Canada have not been affected.

Source: Drive Tesla Canada


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