The Tesla Model Y Long Range Is Now $500 More Expensive

Tesla has just applied a slight price increase to the Model Y Long Range AWD version in the United States, suggesting that maybe demand exceeded expectations after the previous round of price cuts.

The Tesla Model Y Long Range AWD now starts at an MSRP of $48,990, which is $500 or one percent more than previously ($48,490).

Let's recall that in early October, the company reduced the prices of the Model 3 and Model Y cars in the U.S. by a few percent. In the case of the Model Y LR AWD, the reduction was $2,000, so with the recent $500 increase, the model is still less expensive than in September.

Prices

Model	Base Price	Dest. Charge	Tax Credit	Effective Price
2023 Tesla Model Y RWD 19-inch	$43,990	+$1,640	$7,500	$38,130
2023 Tesla Model Y RWD 20-inch	$45,990	+$1,640	$7,500	$40,130
2023 Tesla Model Y Long Range AWD 19-inch	$48,990	+$1,640	$7,500	$43,130
2023 Tesla Model Y Long Range AWD 20-inch	$50,990	+$1,640	$7,500	$45,130
2023 Tesla Model Y Perf. LR AWD 21-inch	$52,490	+$1,640	$7,500	$46,630

* Tesla adds a Destination fee (DST) of $1,390 and an Order Fee of $250 to all its models ($1,640 total).

It will be very interesting to see what will happen later this year, because so far this year, Tesla applied multiple price cuts across the line, which allowed it to increase sales volume, but at the same time, this significantly impacted the margins. The company remains profitable, but the potential for future price cuts is now much lower.

Price adjustments in China

Frequent price adjustments are not limited to the U.S., as Tesla tweaks prices in other markets (which is a direct result of not having dealers that are adjusting the final price up or down from the MSRP).

Most recently, Tesla slightly increased the price of the Tesla Model Y Performance in China - by roughly $1,900 (14,000 CNY) or four percent to 363,900 CNY. Prices of the other two versions (RWD and Long Range AWD) remain the same as on October 1. Let's recall that the Chinese Model Y is now slightly upgraded.