Tesla has just applied a slight price increase to the Model Y Long Range AWD version in the United States, suggesting that maybe demand exceeded expectations after the previous round of price cuts.
The Tesla Model Y Long Range AWD now starts at an MSRP of $48,990, which is $500 or one percent more than previously ($48,490).
Let’s recall that in early October, the company reduced the prices of the Model 3 and Model Y cars in the U.S. by a few percent. In the case of the Model Y LR AWD, the reduction was $2,000, so with the recent $500 increase, the model is still less expensive than in September.
Model | Base Price | Dest. Charge | Tax Credit | Effective Price |
2023 Tesla Model Y RWD 19-inch | $43,990 | +$1,640 | $7,500 | $38,130 |
2023 Tesla Model Y RWD 20-inch | $45,990 | +$1,640 | $7,500 | $40,130 |
2023 Tesla Model Y Long Range AWD 19-inch | $48,990 | +$1,640 | $7,500 | $43,130 |
2023 Tesla Model Y Long Range AWD 20-inch | $50,990 | +$1,640 | $7,500 | $45,130 |
2023 Tesla Model Y Perf. LR AWD 21-inch | $52,490 | +$1,640 | $7,500 | $46,630 |
* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).
It will be very interesting to see what will happen later this year, because so far this year, Tesla applied multiple price cuts across the line, which allowed it to increase sales volume, but at the same time, this significantly impacted the margins. The company remains profitable, but the potential for future price cuts is now much lower.
Price adjustments in China
Frequent price adjustments are not limited to the U.S., as Tesla tweaks prices in other markets (which is a direct result of not having dealers that are adjusting the final price up or down from the MSRP).
Most recently, Tesla slightly increased the price of the Tesla Model Y Performance in China – by roughly $1,900 (14,000 CNY) or four percent to 363,900 CNY. Prices of the other two versions (RWD and Long Range AWD) remain the same as on October 1. Let’s recall that the Chinese Model Y is now slightly upgraded.
MIC Tesla Model Y RWD (LFP):
- Price: $36,788 (263,900 CNY)
- Range (CLTC): 344 miles (554 km) vs. 339 miles (545 km) previously
- 0-62 mph (100 km/h): 5.9 seconds vs. 6.9 seconds previously
- top speed of 135 mph (217 km/h)
MIC Tesla Model Y Long Range AWD:
- Price: $41,806 (299,900 CNY)
- Range (CLTC): 428 miles (688 km) vs. 410 miles (660 km) previously
- 0-62 mph (100 km/h): 5.0 seconds
- top speed of 135 mph (217 km/h)
MIC Tesla Model Y Performance:
- Price: $49,728 (363,900 CNY)
- Range (CLTC): 382 miles (615 km)
- 0-62 mph (100 km/h): 3.7 seconds
- top speed of 155 mph (250 km/h)