Tesla has raised prices for the Model Y and Model 3 in the US and China, after several price drops so far this year. But this time, the increase is very slight.
Tesla prices have been on a pretty wild ride so far this year, with massive drops across all models. The last price drop was just four days ago, on the seven-seat Model Y option.
These declines came after two years of price increases, and now prices are back to where they were almost Same area where they started, in 2020, in most markets.
But many of these price drops have been sudden and massive, leaving some new customers upset that they bought a car before prices dropped by as much as five figures. Still, that’s obviously great for new customers, and it’s made Tesla’s “affordable” models really affordable again, after a few years of fairly luxurious price points.
The needle is now moving in the opposite direction…but not by much.
Tonight Tesla increased prices for the Model Y and Model 3 by, wait for it… $250. Prices in China increased by 2,000 yuan (~$289).
These price changes only seem to affect the US and China, but not other regions. We’ve recently seen Tesla follow price cuts in the US with European ones, so maybe European prices will go up soon, too.
This year’s price drop has many wondering if Tesla is having trouble keeping up with demand. That’s probably the case, but when a company is scaling production as quickly as Tesla, after two years of skyrocketing prices, and in uncertain economic times (not to mention a CEO who seems intent on turning people off…), it’s up to why it should. something to stoke demand.
Tesla has gone so long without pulling any “order levers” that it finally had to start wooing it in earnest at the beginning of this year with these price cuts. So far, it appears that price cuts may not work as well as Tesla hopes, as Tesla stock is reaching historic levels.
But, paradoxically, this latest price hike can stimulate demand by signaling to customers that the price cuts are over and now is the time to buy. After seeing so many price cuts happen almost on a weekly basis, buyers may have been dismounting and waiting to see the bottom. This may be Tesla’s attempt to show customers that this is the bottom, and that they can go ahead and buy now.
We’ve seen another bounce in prices like this one after one of Tesla’s massive declines. Back in January, prices on the Model 3 & Y dropped as much as $13K, then two weeks later, the Model Y went up by $500.
It is enough to make your head spin, trying to keep track of all these price changes. But let’s be honest, on a $40,000+ car, $250 wouldn’t make much of a difference. Perhaps some buyers will have to forgo those all-weather inner linings they’ve been eyeing…
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