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Tesla Increases Model Y Long Range Price by $500

After postponing the Model S Plaid, hiking up the price of the Plaid by $10k right before the start of deliveries, and canceling the Plaid+ variant, everyone’s favorite EV maker has once again ramped up the price of the Model Y. On this occasion, the dual-motor Long Range has been slapped with a $500 increase to $52,490 excluding freight and potential savings.
2021 Tesla Model Y configurator on June 11th, 2021 10 photos
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The Palo Alto-based automaker last changed the price of the crossover less than a month ago, adding $500 to the MSRP of the Model Y Long Range. The go-faster variant stays put at $60,990 before any extra charges and options, which makes it $8,500 more expensive than the base specification.

Why is Tesla making so many changes in such a short amount of time? The answer comes from the one and only Elon Musk, who blames the supply chain. The CEO is especially worried about running out of raw materials and microcontrollers, but Elon Musk refrains from telling the whole story.

First things first, the head honcho told investors during an earnings call that Tesla is mostly out of the semiconductor crisis. That happened in April, and we’re already nearing the halfway point of June 2021. Secondly, and more importantly as well, there’s a brand-new federal tax credit in the pipeline.

It’s only natural for Tesla to hike up the price of its best-selling models in preparation for this governmental freebie, but the bill is riddled with issues and very discouraging for potential EV adopters because of the program’s complexity. In its current form, the credit starts at $7,500, tops $12,500 if the vehicle is assembled in the United States by unionized workers, and applies to vehicles with a retail price below $80,000. Coincidence or not, the Model S Long Range for the 2021 model year is listed from $79,990.

The bill passed the Finance Committee on a 14-14 tie vote last month, but it has yet to become law. The brand-new EV tax credit still needs the approval of the Senate and the House as well as President Joe Biden’s signature.

 
 
 
 
 

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