Tesla raised the prices of its Model Y SUV in the US late on Friday.
The cost of the Model Y Long Range has increased by $1,500 (roughly R26,210) to $54,990 (roughly R960,876), while the Model Y Performance is up $1,000 (roughly R17,473) to $57,990 (roughly R1,013,297), according to the company’s website.
The move comes after the President Joe Biden administration introduced measures to make more crossover SUVs qualify for the newly revamped electric vehicle tax credit. The change, announced on Friday by the Treasury Department, expands the number of consumers who can take advantage of a lucrative $7,500 (roughly R131,071) consumer tax credit by broadening the definition of how a sport-utility vehicle is defined.
Under the Inflation Reduction Act, SUVs costing up to $80,000 (roughly R1,398,096) can receive the tax credits.
Tesla had slashed prices for several of its models earlier this month to stoke demand and qualify for the credits. The Austin, Texas-based company sells its cars directly to consumers and regularly tweaks its prices.
CEO Elon Musk said last week on the company’s quarterly earnings call that price cuts had led to a surge of demand, and Tesla had “ raised the Model Y price a little bit in response to that”.
Wells Fargo & Co said the price changes represented around a $290 (roughly R5,068) increase to Tesla’s global average selling price.
“In our view, the small price increase does not reflect a material change in Tesla’s pricing strategy or industry-wide EV pricing dynamics,” analysts Colin Langan and Kosta Tasoulis wrote.
“We estimate Tesla’s average price is still down $8,100 versus prior levels. Tesla needed the price cuts to drive demand.”
More stories like this are available on bloomberg.com
Tesla raises prices of Model Y in the US
Image: Bloomberg
Tesla raised the prices of its Model Y SUV in the US late on Friday.
The cost of the Model Y Long Range has increased by $1,500 (roughly R26,210) to $54,990 (roughly R960,876), while the Model Y Performance is up $1,000 (roughly R17,473) to $57,990 (roughly R1,013,297), according to the company’s website.
The move comes after the President Joe Biden administration introduced measures to make more crossover SUVs qualify for the newly revamped electric vehicle tax credit. The change, announced on Friday by the Treasury Department, expands the number of consumers who can take advantage of a lucrative $7,500 (roughly R131,071) consumer tax credit by broadening the definition of how a sport-utility vehicle is defined.
Under the Inflation Reduction Act, SUVs costing up to $80,000 (roughly R1,398,096) can receive the tax credits.
Tesla had slashed prices for several of its models earlier this month to stoke demand and qualify for the credits. The Austin, Texas-based company sells its cars directly to consumers and regularly tweaks its prices.
CEO Elon Musk said last week on the company’s quarterly earnings call that price cuts had led to a surge of demand, and Tesla had “ raised the Model Y price a little bit in response to that”.
Wells Fargo & Co said the price changes represented around a $290 (roughly R5,068) increase to Tesla’s global average selling price.
“In our view, the small price increase does not reflect a material change in Tesla’s pricing strategy or industry-wide EV pricing dynamics,” analysts Colin Langan and Kosta Tasoulis wrote.
“We estimate Tesla’s average price is still down $8,100 versus prior levels. Tesla needed the price cuts to drive demand.”
More stories like this are available on bloomberg.com
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