Category: Uncategorized

Tesla raises prices again on Model S, X and Y, Model 3 remains unchanged

Tesla Inc. has yet again made changes to its line up and at this point, I have pretty much lost count as this is getting a bit random. While the pricing strategy seems random, I am starting to see a pattern.

Last quarter, Tesla ushered in the steepest price cuts as I highlighted in my article at the time. The price cuts persisted and slowly crept up by about $2000 during course of that quarter for the Model 3 and Y.

Ahead of its earnings call in early April, 2023, Tesla cut the Model 3 and Y prices by $2000 each and about a week after it’s earnings, they started to raise the price and have increased the Model Y by $500 and Model 3 by $250 since it’s earnings call to date.

I believe the strategy is to give customers the illusion that prices are going back up and lock in more orders for its vehicles. I decided to test out this theory by visiting a Tesla showroom today and it was packed. I could hear various conversations that prices could keep going up and that orders placed right now will lock in current prices until you take delivery. I encourage people to only buy vehicles based on their personal financial situations and shouldn’t be swayed by these price changes. I believe Tesla vehicle prices will keep trending lower.

These are the latest price changes. The Model Y Long Range increased to $50,490 up from $50,240, while the Model S base trim increased to $88,490 up from $87,490. Model X Long Range increased to $98,490 up from $97,490. The Model 3 Long range price remain unchanged at $47,240.

I believe the Model Y Longe Range is the best overall value for the money especially if you qualify for $7500 federal tax credits and various state tax credits depending on your income and other qualifying criteria’s. I would be in the market for a car later this year and I am strongly considering a Tesla Model Y Long range. I will keep you all posted what I decide.

Are you in the market for a Tesla? Let me know in comments, do subscribe to my blog and see you on my next article.

Keep calm, the 2023 recession isn’t coming!

an illuminated light text box


Predicting a recession has always been a fools errand for decades, just as predicting the general direction of the stock market is not practical. Over the course of 2022, I watched financial analysts, professors from Harvard and government officials in the US and around the world predict a recession was nearly certain in 2022. As that year came to a close, the recession predictions started to shift to the first half of 2023.

Most of the predictions was for good reason though. For starters, there was a war raging in Europe and supply chains were a mess. With most of the worlds manufactured goods flowing from China and food staples (think wheat, soybeans and corn), from Ukraine and Russian being disrupted, it was only a matter of time before inflation got out of control.

As the US inflation steadily got out of hand from early 2022 to an annual rate of 9.1% in June, the drumbeat of a recession was at a fever pitch. This wasn’t surprising to me because previous bouts of high prices always lead to a recession.

The expected Central bank policy response to high prices is to increase interest rates to cool the economy, reduce inflation and get the real economy growing at a steady rate, avoiding a downturn. This is what is referred to as a soft landing. Over the course of 2022, interest rates went from around 0.25% to about 4.5% and mortgage rates went to a high of about 7%. Leading to a housing downturn in the US.

All of the factors discussed so far would have easily led to a recession but the US economy had a formidable cushion with consumers flush with cash and the job market still red hot with two jobs available for every American who wants to work for all of 2022.

2023 is here and the economy is still humming along, consumer spending is still strong and supply chains are normalizing. Inflation has decreased every month since July 2022 and durable goods prices like vehicles are coming down fast. Tesla recently announced price cuts and other automakers like Ford are reducing prices as well. I believe more manufacturers would follow as we go through 2023.

I know you would want to point to the the housing market that is still in a funk and technology companies laying off workers left and right. Inspite of those reasons, the underlying US economy is still strong, the Bureau of Labour statistics reported that there are still over 10.2 million job opening on Jan 4th, 2023.

Another positive for the global economy is China. The Asian giant has awaken from its authoritarian Zero Covid policy slumber and it’s economy is predicted to grow at a robust 5% this year. If the US and China keep their economy growing for 2023, I believe a recession won’t materialize.

So Keep Calm, reduce liabilities or debt, work hard at your jobs, live life to the fullest and take care of yourselves! These times of uncertainties shall pass and stay tuned for my next article on how I am planning for the worst case scenario if a recession materializes in 2023.