Tesla recently dropped the prices of its entire lineup of cars. However, inventory is dwindling, and we imagined it wouldn't be too long before those prices would start to rise again. In 2022, every time we reported on Tesla's prices, it would raise them again. Is this where it's headed for 2023, or will Tesla make an effort to keep some prices within the caps dictated by the revamped US federal EV tax credit?
We found it interesting that the Tesla Model Y Long Range model's price dropped from $65,990 to $52,990. That's a huge drop, and one might expect that even if Tesla has dropped the price to $54,990, it would have enticed many more people to place their orders, and still been lower than the $55,000 cap for the new $7,500 tax credit. However, that wouldn't have given Tesla any wiggle room to raise prices if it decided to do so, and it would have meant people couldn't add any options.
Fast forward to today, and the Model Y Long Range, which is the cheapest Model Y you can currently buy in the US, now starts at $53,490. That's exactly $500 more than the starting price after the recent price reductions.
Perhaps Tesla is running out of inventory and delivery wait times are getting pushed back. If so, the company may want to raise prices to slow orders. However, a $500 bump doesn't seem as though it would make much of an impact.
Some suggest Tesla is raising the price ever so slightly to alert customers that it can and will raise prices again and that this is just the beginning. It does seem weird though to think that Tesla might raise the prices to the point that its cars aren't eligible for the new tax credit. That said, we won't know until at least March 2023 what the final rules are surrounding the credit, so maybe Tesla will wait on any major price changes until it's aware of the official qualifications.
Others believe that as Tesla begins to raise prices, orders may actually increase further. It's sort of like the stock. If people see it beginning to rise, they may want to get their order in before it rises even further.
At this point, there's no way of knowing what Tesla has planned, or precisely why it's handling its pricing this way. It's yet another waiting game. In the meantime, this topic deserves some educated conversation. What do you think Tesla is planning related to pricing going forward? Scroll down and leave us your thoughts.