Overnight, Tesla increased the prices of its two least expensive models. The company has no public relations office, so we’ve seen the changes on the Tesla website, but have no official explanation for them.
The Model 3 sedan – the best-selling electric car in America – saw a modest $500 price bump for some trim levels. The base version, the Model 3 Standard Range Plus, now carries an MSRP of $39,490. The Long Range model starts at $48,490.
The highest trim level, the Model 3 Performance, holds steady at $56,990.
The Model Y SUV comes in two trim levels, only one of which gets the increase. The Model Y Long Range now comes at an MSRP of $51,490. The top-of-the-line Model Y Performance gets no price change, staying at $60,990.
Fifth Increase This Year
This is at least the fifth price increase for these cars in 2021. Mid-year price increases are rare for other automakers. But other automakers tend to improve cars only between model years. Tesla eschews model years and makes changes on the fly in the middle of a production run. That means its expenses for building a car fluctuate, so it’s not surprising that its prices do as well.
That strategy has paid some dividends for shoppers. During the recent global microchip shortage, many rivals have slowed or stopped the production of some cars. Tesla has mostly avoided factory closures.
In a quarterly report, the company explained, “we were able to navigate through global chip supply shortage issues in part by pivoting extremely quickly to new microcontrollers, while simultaneously developing firmware for new chips made by new suppliers.”
That’s something other automakers haven’t done. That flexibility keeps the company’s factories running and supply relatively steady but can lead to frequent price changes.
