Tesla price hikes: Here's how much each model costs now

Pras Subramanian

After a brief pause this spring, Tesla (TSLA) is back to hiking prices across models amid ongoing supply chain woes and elevated inflation.

As first noted by EV blog electrek, Tesla’s website now shows the following price changes:

  • Model 3 Long Range rises to $57,990 from $54,490, up $2,500,

  • Model Y Long Range rises to $65,990 from $62,990, up $3,000,

  • Model X Dual Motor All-Wheel Drive SUV rises to $120,990 from $114,990, a $6,000 price increase (the largest nominal price hike),

  • Model S Dual Motor All-Wheel Drive rises to $104,990 from $99,990, up $5,000.

Prices for Tesla’s cheapest model, the Model 3 Rear Wheel Drive, and its most expensive, the Model S Plaid, remained unchanged.

SHANGHAI, Jan. 18, 2021 -- A Tesla Model Y vehicle is pictured at a Tesla Center in east China's Shanghai, Jan. 18, 2021. U.S. electric carmaker Tesla Inc. on Monday began Shanghai deliveries of its built-in-China Model Y. On Jan. 7, 2020, Tesla launched the project to manufacture Model Y vehicles in its Shanghai Gigafactory, its first overseas plant outside the United States. The China-made model went on sale on Jan. 1. (Photo by Ding Ting/Xinhua via Getty) (Xinhua/Ding Ting via Getty Images)
Tesla Model Y SUV with Model X SUV in the background (GETTY IMAGES) (Xinhua News Agency via Getty Images)

Tesla also increased prices in April and March of this year.

Musk warned during Tesla’s Q1 earnings call on April 20 that prices were rising across the board for materials and components, but that the company had locked in pricing with suppliers for at least the short term. He then said pricing at the moment was the company’s “best guest” for the next 6 to 12 months.

Tesla stock fell more than 6% on Thursday morning and is down about 38% so far in 2022.

Musk expressed concern about the state of the economy in recent weeks, claiming he had a "super bad feeling" about the economy when announcing that Tesla needed to cut 10% of jobs at the company.

The big question for Tesla shareholders and analysts is whether these price hikes happening across the EV landscape eventually destroy demand. For Tesla, veteran industry analyst Sam Fiorani, VP of Global Vehicle Forecasting at AutoForecast doesn’t think it will.

“Startups will all need to raise their prices, especially as their profits are small to non-existent at the beginning, and this has already been a PR nightmare for Rivian,” Fiorani told Yahoo Finance Live in March. “With the popularity of Tesla and its place as market leader, demand isn’t likely to be hurt by the new pricing.”

Tesla Model S Plaid
Tesla Model S Plaid. (Tesla) (Tesla)

Rising materials costs and unmet demand are a two-pronged price hike machine.

“Low inventory around the industry has curtailed the use of incentives and price negotiations, neither one of which is used by Tesla," Fiorani said. "Where the traditional brands have, in effect, raised their prices by eliminating these tactics, why shouldn’t Tesla also cash in on higher industry transaction prices?”

Tesla is expected to announce Q2 delivery numbers in early July.

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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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