Anyone who’s been on the fence about buying a new Tesla electric vehicle should go ahead and pull the trigger because prices are continually going up. Tesla has now increased the price of its Model Y SUV by $1000, pushing the price for the entry-level Model Y Long Range up to $58,990. The new price increase comes only a month after the last price increase that saw pricing on the Model Y Long Range model increase by $2000.
Only two weeks into November, and this is the second price increase Tesla has instituted this month. As for why pricing is going up again, according to the automaker, the increased pricing is due to increasing supply chain costs. Like all other automakers, Tesla has been hit with significant shortages in microchips and other high-tech components needed to build automobiles.
It would appear that Tesla has to pay more for components it can obtain than it did previously, forcing pricing to go up on its most popular vehicles. Interestingly, the price increase was applied only to the Model Y, which shares many parts with the popular Model 3. Typically, a price increase on one would also be seen on the other. However, Tesla did not increase the price of the Model 3.
While there is no official word from Tesla on why it did that, perhaps it chose to increase the price of the Model Y, perhaps it was because few people go with the basic edition of that vehicle. As the entry-level into the Tesla range, the base version of the Model 3 certainly attracts a lot of buyers. That’s just speculation on our part, though.
With the new price increase, the Model Y Long Range Dual Motor increased from $57,990 to $58,990. The only other Model Y is the Performance version, and its price went from $62,990 to $63,900. The image above is a screenshot from Tesla’s configurator showing the new starting prices. With this new price increase in place, pricing for the Model Y has gone up a significant amount during 2021. At the beginning of the year, the base price for the Model Y Long Range was around $50,000. Now nearing the end of 2021, the price is increased to the tune of $8990.
The upside for anyone looking to purchase an EV is that buyers shopping for a Tesla model will again have access to the $7500 federal tax credit with the new pending federal legislation. Also worth pointing out is that the price increases are for new orders, so anyone who has previously ordered their Model Y will still receive pricing in effect when they ordered. Currently, Model Y vehicles ordered now will be delivered in 2022.
As we mentioned before, this is not the first price increase for the Model Y or Model 3. In May of this year, Tesla increased pricing on both models by $500. Oddly, in February of this year, Tesla slashed the price of the Model 3 Standard Range Plus base version by $1000, bringing its starting price to $36,990. It also reduced the price of the Model Y Standard Range Rear-wheel Drive version to $39,990. Unfortunately, that version of the Model Y is no longer available.