Tesla Slightly Raises Model Y Prices Following Dramatic Cutbacks

On Tuesday, January 23, the pricing adjustments were made available on Tesla's website. They appear to only apply to Model Y, according to reports. Tesla's most popular vehicle is the one mentioned. And despite experiencing major price drops of up to $13,000, the Model Y's cost has only gone up by $500. https://www.gadgetany.com/news/tesla-model-y-delivery-wait-time-in-europe-increases-is-this-related-to-the-price-drop/ Since several weeks ago, Tesla has been indicating that demand could not be keeping up with supply. Additionally, the corporation has been providing incentives and discounts in various locations as inventory has started to accumulate, which has resulted in the present price reductions. As demand for electric vehicles (EVs) outstripped supply in 2021 and 2022, Tesla sharply boosted pricing in both years. The automaker also experienced some sales issues towards the end of the previous year. [caption id="" align="aligncenter" width="2000"] Image credit- Bloomberg.com[/caption] Tesla would probably succeed in such a market, according to Electrek, which previously noted that a price war for EVs may develop as a result of these significant cuts. Tesla will see a decline in its high margins, but as these margins are still higher than those of its rivals, the business will still have room to lower prices when supply catches up to demand. Tesla claimed "record demand" for certain EV models in the weeks following the price decrease. In addition to the $13,000 price reduction, many consumers would save a further $20,000 if they purchase the Model Y before March when it is anticipated that US EV tax incentives will be revised once more. Notably, the most recent price increase has had an impact on the EV tax credit once more. [caption id="" align="aligncenter" width="1280"] Image credit- Tesla[/caption] The 5-seat Model Y's beginning MSRP, according to Electrek, was $52,990, so up to $2,000 in additions could be added before the car went over the government's $55,000 MSRP maximum for tax credits. Customers could then choose any paint colour they desired for an extra $2,000 or they could choose the $2,000 20-inch wheels and narrowly avoid the price increase. Model Ys with the 20-inch wheel option or the priciest red multi-coat paint colour will now have a base price over $55,000 and will not be accepted into the programme. A 5-seat Model Y can only qualify for tax credits if it is painted silver, blue, or black and comes standard with a tow hitch, however, the hitch can be added afterwards.