Tesla Increases Price of Model Y, Cuts Price of Model 3 RWD in U.S.

Tesla has tweaked its prices yet again in the United States for the Model Y and Model 3.

According to changes spotted by @Tslachan, the Model Y has increased in price as expected after all trims today now qualify for the federal tax incentive of $7,500.

Previously, only the 7-seater Model Y was eligible but with a price cap raised to $80,000 USD across the board, all Model Y trims now qualify and we suspected a price hike was imminent. It’s now here.

Model Y Price Changes 

• Long Range: $54,990 (was $53,490; up $1,500)
• Performance: $57,990 (was $56,990; up $1,000)

Now, remember on January 23 (less than 2 weeks ago!), Tesla increased the price of the Model Y Long Range by $500. So we’re seeing a $2,000 increase in under two weeks for the Model Y Long Range.

As for the Model 3 Rear-Wheel-Drive (RWD), it has decreased in price, adding more price pressure on the auto industry.

Model 3 Price Changes

• Model 3 RWD: $43,490 (was $43,990; down $500)
• Performance: $53,990 (no change)

This increased price gap between the Model Y and Model 3 will likely push more sales towards the latter, as it’s now available from $349/month for leasing, as stated on Tesla’s website. After the $7,500 tax credit for eligible buyers, the Model 3 works out to just $35,990 USD.

Tesla Model 3 Base Price History chart via Aldrich below:

Tesla also recently lowered prices in South Korea, with Model 3 and Model Y eligible for a new state subsidies in the nation.

…developing, more to follow