Wait, if there was no demand and Tesla was trying to break records, why would it up the price?

Some may find it very strange that Tesla has suddenly increased the price of some of its Model 3 vehicles. It's the end of the year, the automaker is pushing to deliver as many cars as possible, and the U.S. federal EV tax credit is mere days from expiring.

Tesla CEO Elon Musk continues to assert that Tesla offers realistic pricing, unlike legacy OEMs. Sure, the price of Tesla's vehicles seems to fluctuate on a regular basis, but so does the economy, the stock market, trade wars/relationships, and honestly, the financial basis for our country and the globe as a whole.

While many folks will continue to say that legacy automaker's MSRP (manufacturer suggested retail price) makes more sense, there are some notable caveats. Yes, traditional OEMs set a price that typically holds for an entire model year in an attempt to offer car shoppers some consistency. However, since it's simply a "suggestion," dealerships are free to sell cars for whatever price they choose (within reason in some cases).

Meanwhile, Tesla gets flack for constantly fluxing its vehicle prices, since it confuses not only buyers, but also the media. But still, what you see is what you get. If you head to the Silicon Valley automaker's website in an effort to buy one of its vehicles, the price you see is what you'll pay. There is no fluctuation at the time of purchase, no haggling with a dealer rep, etc.

With all of that said, Tesla has, once again, quietly adjusted some of its vehicle prices. More specifically, the two least expensive U.S. Model 3 variants get a $500 bump up. Interestingly, all of this comes at a time when Tesla is clearly working to sell as many vehicles as possible and prove its best quarter ever in terms of deliveries. It also comes at a time when the automaker's tax credit ($1,875) is days away from disappearing.

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FYI, the previous pricing was set at $39,490.


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Prior to this update, the Model 3 Long Range was priced at $48,490.

Remember the whole Tesla naysayer's "demand cliff" scenario? According to those folks, you don't increase the prices of your vehicles if demand is low. In fact, you'd be wise to decrease prices. Perhaps all, if not most, orders going forward are for deliveries that will now happen after the new year? Maybe Elon Musk is about to announce that Full Self-Driving is feature complete? Is there some other reason here that we aren't considering?

Please provide us with your insight in the comment section below.