This morning, the Tesla site was updated to reflect new pricing of its best-selling lower-priced models, the Model 3 sedan and Model Y crossover. The entry-level offering for both cars (the Standard Range Plus version of Model 3, and the Long Range version of Model Y) has been increased by $2,000 USD. Additionally, the Performance version of both vehicles has been raised by $1,000 USD. This means the Model 3 Standard Range Plus now costs $41,990 USD. The Model Y Long Range now starts at $54,990 USD. The Model 3 Dual Motor Long Range did not receive a price bump this time.
Tesla, which is now sold out of Model 3 and Model Y vehicles through at least the end of the year (except the Model Y Performance, though they are expected to sell out very soon), is presumably raising the prices of both vehicles to match the huge demand. Given past price increases which had little effect on sales, one can expect a similar result from this increase. Since Model 3 and Model Y are the company’s best-selling vehicles, this change is expected to increase its profits while orders continue to roll in.
Now, price increases are nothing new for the company. Over the past year, Tesla has raised the prices of the Model S and Model X, its highest-priced and highest performing vehicles, numerous times. The Model S and Model X received two consecutive $5,000 USD price increases after the unveiling of the refreshed styling of Model S and Model X, featuring a few new exterior design elements in addition to a huge interior refresh, bringing new seats, a horizontal screen orientation, a second-row entertainment system, and a variety of new driving features. This set of price increases also coincided with the introduction of the new Plaid Model S and Plaid Model X- which feature a new tri-motor design that can launch the Plaid Model S from 0 to 60 MPH in a blazing 1.99 seconds, and reach speeds of 200 MPH (pending the release of a software update that increases the vehicle’s top speed from the current 163 MPH limit).