Tesla has increased the prices of specific Model Y vehicles in the United States by $1,000, as displayed on its official website.
The electric vehicle manufacturer raised the prices of its Model Y rear-wheel drive and long-range variants to $43,990 and $48,990, respectively.
However, prices for the Model Y Performance variant and other models have remained unchanged, according to the information available on the website.
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This price adjustment follows Tesla’s recent move to temporarily reduce prices on some of its Model Y cars in the U.S. until Feb. 29, following similar price cuts in Europe and China.
Addressing the challenge of balancing production and demand, CEO Elon Musk commented last month in response to a Tesla post on X that prices would increase in March. “This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal.”
In recent months, consumers in the United States have shown a preference for hybrid cars over pure electric vehicles, likely due to concerns about higher ownership costs and the expiration of federal tax credits for certain models under the Inflation Reduction Act.
See also: Tesla Confirms No Model Y Refresh for North America in 2024
Tesla had previously cautioned of “notably lower” sales growth this year, citing its focus on producing the next-generation electric vehicle, internally referred to as “Redwood.”
The latest price increase is expected to provide some relief to Tesla’s margins, which have been under pressure due to a price war with competitors that began over a year ago.
