Why Tesla Just Raised Model Y Prices Shortly After Lowering Them
Tesla pricing is a rollercoaster, and if you’re a potential buyer, you’ve been holding on tight for a long time now. The pricing of Tesla models frequently fluctuates as the electric vehicle and energy company fights to survive and thrive in a rapidly changing industry with new players arriving every month. Tesla Model Y prices were just lowered less than a month ago. Now, the automaker has raised Model Y prices again. Here’s why.
Why Tesla Model Y pricing is so volatile
If Tesla Model Y prices have been making your head spin, you’re not alone. Model Y prices have jumped up and down for years for a variety of reasons. Supply, tax incentives, and a competitive market are a few of the major reasons why Tesla Model Y prices just can’t seem to keep still.
Recently, the Model Y’s prices were lowered to be more competitive. Several automakers have made a huge impact on the small electric SUV space in the last two years. The Volkswagen ID.4, Hyundai Ioniq 5, and Mustang Mach-E all pose a real threat to the Model Y. Tesla’s small electric SUV once dominated in its segment. It’s quickly losing market share, and the company has to act fast.
Federal electric vehicle tax incentive eligibility is a huge driving force for the price fluctuations of any electric vehicle. Unfortunately, tax credit eligibility is very unclear for consumers, especially following the Inflation Reduction Act of 2022.
The revised incentive favors electric vehicles that are made in America to promote the sale of American-made electric vehicles and support American EV assembly jobs. This revision excludes many foreign vehicles. Fortunately, Tesla is an American company, and it assembles many of its EVs in the United States. Now that Tesla qualifies for tax credits again, it’s a whole new ball game for the company.
How much does the 2023 Tesla Model Y cost?
As of February 6th, 2023, the 2023 Tesla Model Y starts at $54,990, according to Reuters. After an incentive of $7,500, the Model Y’s starting price is closer to $47,490 before taxes, fees, and additional local incentives. That’s the most affordable Model Y starting price in quite some time.
A starting price of $47,490 after redeeming the tax credit puts the Model Y in direct competition with more affordable small electric SUVs. Is Tesla positioned to dominate the market in 2023? Let’s break down the specs to see how it fares against rivals.
Tesla Model Y Long Range specs
The 2023 Tesla Model Y comes in two trim levels: the Long Range and Performance trim. The Model Y Long Range can travel for a whopping 330 miles of driving range (according to Tesla). Edmunds claims that the Model Y Long Range can go from 0-60 miles per hour in 4.8 seconds.
If you’ve wanted a Tesla Model Y, there hasn’t been a better time to get one in months. That being said, be aware that Tesla models have struggled with reliability issues. According to Tesla’s website, the Model Y only qualifies for the revised tax incentive until March 2023.
Let us know if you think the 2023 Tesla Model Y is worth getting now that it’s eligible for a tax incentive in the comment section below.
