Tesla currently only offers the Model Y electric crossover in two configurations, the Long Range and the Performance. Shoppers have been waiting for a cheaper model to materialize, such as a Standard Range or just a "base" Model Y, much like the Model 3.
That said, Tesla did offer a cheaper Model Y in the States for a very brief time. However, since then, it has been raising the prices of its vehicles on a regular basis. Moreover, it just raised the Model Y's pricing yet again.
According to the automaker, there is such a high demand for its vehicles, and it remains production constrained. For these reasons, it's raising prices to manipulate demand. The Model Y is one of the most popular EVs in the world, and it's selling like crazy on our shores. However, there comes a point that Tesla doesn't want to have to keep people waiting for months or even over a year to take delivery.
Gallery: 2021 Tesla Model Y
The Model Y Long Range starts at $58,990, though when you go to Tesla's site and click on it, it defaults to the 20-inch Induction Wheels, which cost an extra $2,000. You can simply scroll down and choose the included 19-inch Gemini Wheels to see the price come in under $60K. The Model Y Performance carries a starting price of $63,990.
Currently, Tesla's website says you won't get the Model Y Long Range until around October of 2022 if you choose the included wheels. If you go with the wheels that cost $2,000 extra, you may get your EV around June 2022. Choosing the range-topping Performance model may get you into a Model Y as soon as February 2022.
More electric SUVs have come to market, and several are on the way. Many carry lower starting prices than the Model Y, not to mention most are eligible for the $7,500 federal EV tax credit, which isn't available on the purchase of a Tesla vehicle. The potential "new federal EV credit" could have an even greater impact on peoples' decisions regarding which EV to buy, and it may work against Tesla. Will people keep ordering the Model Y at $60,000?
Cleanerwatt dives into the Model Y's high starting price to help us determine whether it's now overpriced for what you get, or truly worth its ~$60,000 price tag. He says the Model Y is clearly worth more than $60,000. To be clear, he's not basing this on his opinion, but rather, the market itself. A used Model Y with 30,000 miles on it will already sell for over $60,000, and there are many other factors and details to consider.
Regardless of the market, shoppers have to feel confident about spending this kind of money on a car. We believe it's equally important to learn what you think about the price of the Model Y. Is it too expensive? Let us know your thoughts in the comment section below.