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.