Tesla Raises Prices on Model 3 and Model Y

For those searching for an electric vehicle, Tesla is likely one of the first brands that come to mind. However, those interested in the Model 3 or Model Y series will need to adjust their budgets slightly. In May 2021, Tesla raised the prices of both models by $250. While not a significant increase, it’s important for potential buyers to be aware of any price adjustments. Let’s dive into the details of these changes and what this means for those considering a Model 3 or Model Y.

The Model 3, Tesla’s most affordable electric vehicle, now starts at $40,240. This increase comes after several price reductions in the past year. However, it’s worth noting that the base Model 3 still qualifies for a federal tax credit of $7,500 for eligible buyers. When factoring in this credit, the Model 3 can still be an affordable option for those interested in an electric vehicle. Additionally, the Long Range and Performance versions of the Model 3 were not impacted by this price increase.

As for the Model Y, the SUV-style Tesla now starts at $47,240. This is a slight increase from the previous starting price of $46,990. Like the Model 3, the Model Y also qualifies for a federal tax credit of up to $7,500. However, interested buyers will need to act quickly to take advantage of this credit as Tesla is expected to reach the government’s electric vehicle sales threshold sometime in 2021. Once this threshold is reached, the tax credit will begin to phase out.

It’s important to note that Tesla has not provided any reasoning for this price increase. However, it’s possible that it could be related to the global chip shortage impacting the automotive industry. Tesla has experienced several production delays and shutdowns due to this shortage. While this has not been directly confirmed, it’s worth considering as a potential factor.

Despite the price increase, Tesla remains a top choice for those interested in electric vehicles. With a growing network of charging stations, impressive performance, and innovative technology, Tesla continues to set the standard for electric cars. It’s also worth considering the long-term savings that come with driving an electric vehicle, such as lower maintenance and fuel costs. For those who can afford the price increase, the Model 3 and Model Y remain solid options in the electric vehicle market.

Conclusion: If you’re currently considering a Model 3 or Model Y, it’s important to be aware of the recent price increase. While $250 might not seem like a significant amount, it’s important to factor this into your budget. However, it’s important to remember that both models still qualify for a federal tax credit, which can significantly offset the cost. Tesla remains an innovative brand in the electric vehicle world, and these slight price adjustments don’t change that. Consider all the factors when making your decision, including long-term savings and additional benefits of owning an electric car.