Last week, Tesla raised the prices of its Model 3 sedan and Model Y SUV. This week, they’ve bumped up prices again. This latest round of increases applies to every vehicle in the Tesla lineup.
The increases range from $2,000 to $10,000.
New Pricing:
Tesla also charges a $1,200 destination and documentation fee on all its cars.
| Model | Price | Increase This Week |
| Model 3 | $48,490 | $2,000 |
| Model 3 Long Range | $55,990 | $2,500 |
| Model 3 Performance | $61,990 | $3,000 |
| Model Y Long Range | $64,990 | $2,000 |
| Model Y Performance | $67,990 | $3,000 |
| Model S | $104,490 | $5,000 |
| Model S Plaid | $140,490 | $5,000 |
| Model X | $120,490 | $10,000 |
| Model X Plaid | $144,490 | $10,000 |
Frequent Price Changes are Normal for Tesla
Tesla operates on a different business model than most of the auto industry. Most automakers update their cars on set dates as part of specific model year revisions. They set sticker prices each model year and rarely change them during a production run (though, with the supply chain challenges of the last year, some have recently made mid-stream price changes).
But consumers rarely pay sticker price for a new car. Traditional automakers sell their cars through third-party dealerships that must negotiate prices to make their own profit from the sale.
Tesla doesn’t recognize model years. It changes its cars on the fly, updating components and features on no set schedule. That means it often raises prices at unpredictable times.
It also sells cars directly to consumers for set prices, with no third-party dealership involved.
That means Tesla price increases could come about thanks to manufacturing changes, the fluctuating cost of materials, or a simple effort to capture more profit from each sale. The company never explains cost increases.
The average new car costs about $5,000 more than it did one year ago, regardless of manufacturer. But some of Tesla’s increases have far exceeded the industry average. The Model S, for instance, has now seen its base price rise by 50.5% in 18 months. In October 2020, it started at $69,420.
