Tesla Increased the Price of 2 of Its Most Affordable Models
Tina Joesph
Updated on Apr 27, 2022 · 2 min read
Price fluctuations can be frustrating when you’re looking to buy a
new car
. It complicates your budgeting plans, and you still have to consider the added cost of car insurance
. This is why it caught people's attention when
Tesla
raised the price on two of their more affordable models, according to Kelley Blue Book
(KBB). Anyone in the market for a Tesla Model 3 or Model Y, will have to consider whether they’re worth the price bump.
Why did Tesla raise the prices on the Model 3 and Model Y?
While most automakers keep the same model designs for an entire year, KBB reports that Tesla often makes changes in the middle of a production run. This allows them to meet changing market needs quickly, but it also frequently changes their production expenses and model prices.
Due to the
microchip shortage
this year, many rival automakers had to stop making their cars. Tesla, however, switched from using microchips to microcontrollers in parts of their designs. They also switched to new chip suppliers and developed new firmware to use them, which allowed Tesla to keep producing their cars.There’s no official explanation from Tesla, but given that the models keep fluctuating, it makes sense that the prices do as well. This is the fifth price increase for these models.
Tesla Model 3 price increases
One of Tesla's most popular models is their Model 3 sedan. The Tesla Model 3 comes in three trim levels: Standard Range Plus, Long Range, and Performance. Higher trim levels have additional special features.
As of now, the price of the Standard Range Plus has increased by $500 to $39,990. The Model 3 Long Range's price also got bumped up $500 and now costs $48,990. The Model 3 Performance's price has stayed at $56,990 for the time being.
Tesla Model Y price increases
The Tesla Model Y SUV comes with two trim levels: Long Range and Performance. The price of the Long Range trim level increased $500 and now costs $51,990. The Model Y Performance stays at $60,990.
The most affordable Tesla Model 3 now starts at almost $40,000, and the price changes might impact your insurance rates. Higher
repair costs
can mean a bigger car insurance bill. Fortunately,
Jerry
can help you compare competitive quotes from 45 top insurance companies to make sure you’re not overpaying for coverage. The free app makes finding the best coverage for the best price quick and easy.
