Within two weeks (on April 1, 2024), all trims of the Tesla Model Y in the United States will become more expensive by $1,000.

The company announced the upcoming price increase on the model's ordering page.

Prices will increase by $1,000 for all Model Y trims on April 1.

This appears to be Tesla's latest move to encourage potential buyers to order now.

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Tesla's price dance

Tesla is known for active and relatively frequent changes in its pricing, especially when there is an imbalance between supply and demand. One of the reasons behind that is the lack of a middleman (dealers), which usually would apply rebates (or increases) to the MSRP/

Additionally, all new Model Y orders (cash or finance purchases) that are delivered by March 31 will come with 5,000 free Supercharging miles. Those who trade in a vehicle can receive an additional 5,000 miles for a total of up to 10,000 miles.

These two elements indicate that Tesla intends to boost sales results in the first quarter of 2024. Showing some growth is always important for a publicly traded company. In the past, Tesla CEO Elon Musk also said that prices change to keep the factories busy and efficient (at a stable production rate).

Let's recall that Tesla currently offers three versions of the Model Y in the U.S.:

  • RWD: $43,990
  • Long Range AWD: $48,490
  • Performance: $52,490

Prices of the RWD and Long Range AWD versions were temporarily lowered by $1,000 in February.

If the price increases by $1,000, the change will be worth 2.2% for the entry-level RWD version and 1.9% for the top-of-the-line Performance version.

Current Prices

Model Base Price Dest. Charge Tax Credit Effective Price
2024 Tesla Model Y RWD 19-in $43,990 +$1,640 $7,500 $38,130
2024 Tesla Model Y RWD 20-in $45,990 +$1,640 $7,500 $40,130
2024 Tesla Model Y Long Range AWD 19-in $48,990 +$1,640 $7,500 $43,130
2024 Tesla Model Y Long Range AWD 20-in $50,990 +$1,640 $7,500 $45,130
2024 Tesla Model Y Perf. LR AWD 21-in $52,490 +$1,640 $7,500 $46,630

* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).

The U.S. is not an exception. Tesla price changes are also coming to other markets. In Canada, prices of RWD and Long Range versions are already $1,000 CAD higher than before, according to Drive Tesla Canada.

On March 22, prices of the Model Y will also increase in Europe. The change will be even bigger—about €2,000, which is about $2,180.

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