Tesla’s Price Increase for Model 3 Long Range: A Boost for Model Y Sales?

253

Tesla has increased the price of the refreshed Model 3 Long Range in the US by $1,500, making it start at $47,490. The base Model 3 RWD is still priced at $38,990, unchanged from last month. The Model 3 Long Range is now competitively priced with the Model Y Long Range, which starts at $47,990. Historically, the Model Y has been more expensive than the Model 3, but the price gap has narrowed for the base versions of both vehicles.

Tesla is offering additional discounts on inventory Model Y vehicles in the US, making the Model Y cheaper than the Model 3 in some instances. This phenomenon mirrors what has previously occurred with Model S and Model X pricing. Tesla adjusts prices based on demand and production capacity, with current Model Y production being higher than Model 3 production.

The price increase is partly due to enabling the production of more Model Y vehicles. Beyond new orders, Tesla has recently provided discounts on new inventory vehicles. Some Model Y Long Range inventory vehicles are currently available for up to $5,000 less than a new Model 3 Long Range.

The price adjustment reflects Tesla’s focus on balancing production and demand. The new pricing strategy could impact consumer preferences and vehicle sales, benefiting both the Model 3 Long Range and Model Y Long Range.