Tesla has recently made changes to the prices of two of its electric vehicles: the Model Y crossover and the Model 3 sedan. The Model Y Long Range has gone up $1,500 from $53,490 to $54,990 and the Model Y Performance has increased $1,000 from $56,990 to $57,990. On the other hand, the Model 3 Rear-Wheel-Drive vehicles have received a price decrease of $500, now priced at $43,490, down from $43,990.
These price changes are the latest in a series of adjustments for the Model Y. Earlier in January, Tesla lowered the prices of its vehicles, including the Model Y, by substantial amounts, with the largest reduction of $13,000 applied to its trim levels. However, a few weeks later, the company added $500 to the Model Y’s price tag.
Recently, the IRS updated its list of qualifying vehicles, and the Model Y’s entire lineup was added to the SUV category. This reclassification means that all Model Y trims are now eligible for the $7,500 tax credit and its price limit to qualify for the incentive has been raised to $80,000.
See also: Tesla Model Y Long Range Dual Motor Price and Specifications
Tesla has implemented slight price increases to counteract the impact of weakened automotive margins caused by previous price cuts. The introduction of the Model Y to their list of vehicles has provided an opportunity for the company to boost profit per vehicle through these price adjustments.
The Model 3 Rear-Wheel-Drive saw a $500 price drop, making it more accessible to some consumers and priced at $43,490, significantly lower than the average electric vehicle price of $65,041 as reported by Kelley Blue Book in December 2022.
However, the Model 3 Performance model maintains its price of $53,990. Delivery dates for the Model Y vary from March to May for the Long Range configuration and February to March for the Performance trim, while the Model 3 Rear-Wheel-Drive and Performance configurations have an estimated delivery date between February and March.