Tesla just raised the prices on both its Model Y and Model 3 Long Range by about $3,000, something we’ve seen time and time again over the last few years. And while it was hard to call Tesla vehicles “affordable” before, they’re certainly not affordable anymore after all these price hikes.
Update, 6/16/22: We’ve updated this article to reflect the most recent price hikes for the Model 3 and Model Y.
Tesla isn’t the only electric car company raising prices. Supply constraints and other issues continue to hit everyone (minus Chevy, apparently), and now, EVs from leading brands like Rivian, Polestar, and Lucid cost thousands more than they did just a few months ago. But Tesla’s approach to price hikes is different. It’s slow, routine, and difficult to notice.
If you’ve been paying attention, Tesla cranked up Model 3 and Model Y pricing all throughout 2021 and 2022. But rather than one huge price jump, we’ve seen the company slowly increase the price by $1,000 or $2,000 every few months, making the vehicles far more expensive than many expected.
While the configurations and options continue to change, making it hard to track pricing completely, here’s where things stand. The Model Y initially hit the streets with a base model offered at $47,000. However, as of today, the most affordable Tesla Model Y will run buyers $62,990. Two months ago, the Model Y SUV cost $59,990 (which seemed unacceptable at the time but very desirable now).
Tesla no longer offers the Model Y in a standard range, making the price difference seem even more substantial. That said, the Model Y Long Range first debuted at $51,000 and now costs $67,990. That’s about a 30% increase, ouch.
Unfortunately, we’re seeing the same price increase today for what many expected to be Tesla’s first genuinely affordable EV, the Model 3.
Tesla increased the price so many times on the Model 3 in 2021 that we lost count, and those increases continue here in 2022 due to several different factors. Thankfully, Tesla didn’t touch the base or Performance Model 3 price today, focusing instead on the Long Range configuration.
The Model 3 Long Range is in a similar situation as the Model Y SUV, and on June 16th, 2022, the price went from $54,490 to $57,990. That same car was only $48k back in 2021. As a comparison, the base Model 3 first arrived for $35,000 and currently costs $46,990.
Again, this isn’t necessarily Tesla’s fault. We’re merely pointing out that the promise of an affordable Tesla simply isn’t here anymore and died a while ago. That said, if you don’t want to deal with price hikes, your best bet is to reserve a Tesla now. Either that, or wait a few years (or a decade) for the used market to cool down.