daily economic news
2023-01-24 22:13:46
The price of the Model Y in the U.S. has increased by $500. Some investors said that the price increase may stimulate the growth of orders for this model. Why?
Every reporter Li Menglin Every editor Lan Suying
Less than two weeks after significantly lowering the U.S. prices of all models, Tesla raised the price of the Model Y dual-motor full-drive model slightly by $500 on January 24, with a starting price of $53,490 after the increase.
Earlier this month, Tesla cut the starting price of the model by $13,000 to $52,990. Despite this small price increase, the Model Y is still priced significantly lower than last year’s $65,990.
Image source: Tesla official website
The current starting price of $53,490 still qualifies for subsidies under the U.S. Inflation Reduction Act. According to the requirements of the bill, the Model Y crossover is not an SUV and is classified under the category of “all other models”, and its subsidized price is capped at $55,000. After receiving a subsidy of US$7,500, the actual price for consumers to purchase Model Y is US$45,900.
According to Teslarati, a website focused on Tesla news, $53,490 is a very reasonable price for consumers. In 2022, Model Y was already one of the best-selling models in the United States before the price was cut. The slight increase after the price cut will not affect the trend of Model Y sales this year.
Tesla investor Christopher Dungeon said on Twitter that this small price increase will increase Model Y orders because consumers are afraid of further price increases in the future. Another Tesla investor replied to the tweet saying that Tesla may gradually move the selling price closer to the subsidy ceiling of US$55,000, causing consumers to rush to place orders because they are afraid of missing out on low prices.
“Daily Economic News” noticed that the current US electric vehicle subsidy policy may change in March this year, especially when it comes to the origin of electric vehicle batteries. This uncertainty will prompt potential consumers to place orders before the subsidy may expire.
However, for a $500 price increase, buyers may forego some options, such as multi-coat red paint or 20-inch Inductio wheels. These upgrades are all worth $2,000, which would push the overall price of the vehicle above $55,000, making it ineligible for the subsidy.
Photo source: Photo by Zheng Derui, Daily Economic News