Electric vehicle giant Tesla has increased prices on certain Model Y configurations just a month after temporarily reducing costs to boost sales. 

On Friday, March 3rd, 2024, the automaker quietly raised prices by $1,000 on its popular Model Y SUV’s Long Range and Performance versions.

According to Tesla’s website, the Model Y Long Range now starts at $48,990, up from $47,990. 

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• Tesla raised prices on certain Model Y versions by $1,000 in the US on March 3rd.

• Long Range and Performance Model Y now start at $48,990 and $63,990 respectively.

• The ​price ​hike ​​comes after ​Tesla ​temporarily ​cut Model Y prices ​in February to ​boost ​demand​​​.

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Tesla Raises Prices on Select Model Y Vehicles in the US

The high-performance Model Y Performance jumped to $63,990 from $62,990. 

Entry-level prices for the rear-wheel drive Model Y remain unchanged at $43,990.

Tesla had cut Model Y prices in the US by around 20% in early February, with CEO Elon Musk citing typical seasonal fluctuations in demand. 

However, the company warned last month of slower growth in 2024 as it focuses on launching its next-generation vehicle platform dubbed “Redwood.”

The recent Model Y price increases may relieve Tesla’s margins, which have been under pressure from heightened competition. 

Rivals like Ford, Hyundai, and Volkswagen have aggressively priced their newest electric SUVs to compete with Tesla’s top-selling Model Y.

Tesla ​also ​faces ​new battery ​​sourcing requirements for federal ​tax credit eligibility under the Inflation Reduction Act​. 

As a result, many US customers have opted for more affordable hybrid models from legacy automakers like Toyota in recent months.

With its brief period of discounting over, Tesla appears to be sticking to its strategy of keeping prices higher than most rivals. 

The Model Y continues to lead US EV sales by a wide margin, though its market share dipped below 65% in January.

Tesla’s share price has fallen nearly 19% year-to-date amid broader market volatility. 

While​ near-term vehicle demand faces headwinds, the company aims to drive down costs and improve profitability as factories in Berlin, Austin, and Shanghai ramp up production.

The ​recent ​Model Y ​price ​hike may frustrate some buyers ​but ​shows Tesla ​remains confident ​in ​the ​demand ​outlook​​. 

With the US EV market still in its infancy, the company is positioned to capitalize on its dominant brand status for years to come.