Tesla raises Model 3 and Model Y prices for the fifth time in 2021

So far in 2021, Tesla Model 3 and Model Y prices have been on a roller coaster ride and according to the latest news, they went up yet again. As of now, the cheapest Tesla comes with a price tag of $39,000.

If someone tracks the price of Tesla’s lineup historically then they will found frequent price swings but the year 2021 has given a completely new dimension to Tesla’s price swings. It seems Tesla has adopted a strategy of small yet frequent price changes. For these rapid price changes, a typical potential customer might be interested in buying a Tesla car sooner rather than later.

Back in February this year, the company made several changes to Model 3 and Model Y prices. Back at that time, the company mostly reduced price. In early March, the company again reduced the price before increasing the price in late March. Earlier this month, Tesla once again increased the prices across the Model 3 and Model Y lineup and a few weeks later, now, it again increased the price.

Tesla raises Model 3 and Model Y prices for the fifth time in 2021
Tesla Model 3 and Model Y

The price of Tesla Model 3 Standard Range Plus and Model 3 Long Range AWD were raised by another $500 while the price of more expensive Model 3 Performance was kept unchanged. The price of Tesla Model 3 Standard Range Plus increased from $38,490 to $38,990 whereas the price of Tesla Model 3 Long Range AWD went from $47,490 to $47,990. The price of Tesla Model 3 Performance was kept unchanged at $56,990.

Frankly, a price change of $500 is acceptable but this is the fifth price change so far in the year. The price of Tesla’s cheapest model, Model 3 Standard Range Plus has now increased by $2,000 from February’s low.

The company has discontinued the Standard Range version of Model Y weeks after launching it, and now the company sells only 2 versions of the Model Y. The price of Tesla Model Y Long Range AWD was changed from $50,490 to $50,990 whereas the price of the expensive model, Tesla Model Y Performance was kept unchanged at $60,990.

Tesla raises Model 3 and Model Y prices for the fifth time in 2021
Tesla Model Y

Interestingly, Tesla has not specified anything to explain the price changes so people are speculating and creating their own version of the story for a possible explanation. It is possible that Tesla is seeing a sudden hike in demand so it is capitalizing on the opportunity, or their cost might have also increased due to supply chain concerns like microchip shortage.

There is also a chance that Tesla has increased price to offer its buyers a rebate in federal tax. The last assumption might be considered as an opportunistic move from Tesla, but it is true that Tesla buyers were blocked from getting a federal tax credit for the past 2 years for the wrong reasons and Tesla at that time adjusted by decreasing its prices across its lineup.

Last but not the least, Tesla is about to launch a brand new version of the Model S. The company has tagged it with a price tag of $79,990. The Plaid model is tagged with a price tag of $119,990 whereas the Plaid+ comes with a price tag of $149,990.

The company has already started taking orders for these. According to the company’s official website, the company will start delivery after 10 to 14 weeks. The company claims the best model will achieve a top speed of 200 mph and a range of 520 miles.