Tesla’s Model 3 and Model Y are $2,000 more expensive following new price change


Tesla has increased prices for its Model 3 and Model Y in the US by another $2,000 – the seventh time the models have seen a price jump this year.   

Industry experts speculate the increase is due to the global chip shortage that is expected to linger until 2023.

Now the cheapest Model 3 is the Standard Range Plus, which has a base price of $41,990, and the lowest priced Model Y is the Long Range Dual Motor, which starts at $54,990.

Although the Elon Musk-led firm has been affected by the chip shortage, it delivered 241,300 cars worldwide in its most recent quarter – more than any other electric car maker.  

Tesla has increased prices for its Model 3 (pictured) and Model Y by another $2,000 – the seventh time the models have seen a price jump this year

And 96 percent of Tesla’s sales came from newer Model 3 sedan and Model Y crossover, according to Tesla. 

The company shipped 64 percent more vehicles than during last year’s third quarter.

However, other carmakers were not as successful: GM was down 33 percent and is blaming the chip shortage on the decrease in sales. 

Tesla has increased pricing for its Model 3 and Model Y vehicles several times this year.

Industry experts speculate is due to the global chip shortage that is expected to linger until 2023. Pictured is a Tesla Model y

Industry experts speculate is due to the global chip shortage that is expected to linger until 2023. Pictured is a Tesla Model y

In February, Tesla made several changes to Model 3 and Model Y prices.

Some of the changes were a drop in price, which also occurred in early March – prices were raised by the end of the month, Electrek reports.  

In early April, the prices for both models were again increased, followed by another increase in late April and another one in early May both models. 

And last month, Tesla raised the Model Y twice.

No changes have been announced for the Model S, but the vehicles did see price jumps in August – with the starting price moving from $79,990 to $84,990 and then to $89,990 in just under a month.

The Model X’s price also increased throughout 2021, rising from $89,990 to $94,990 for the Long Range model, and then up to $99,990.

The price increases means Tesla’s $39,000 Cybertruck is the company’s cheapest vehicle, though it is still unavailable for purchase, as production is set for 2022.

Musk said earlier this year the vehicle would be delayed, citing battery shortages.

The statement was made during Tesla’s second-quarter earnings call in July, which highlights the firm’s struggle to ramp up production of its next-generation 4680 battery cell that will be used in the Cybertruck, along with issues of the global chip shortage.  

In addition to the battery shortage, Tesla’s Cybertruck has also been impacted by the global chip shortage.

‘People sometimes say, why don’t you just build a chip fab? Okay. Well, okay,’ Musk said during the call.

‘That would take us, even moving like lightening, 12 to 18 months.

‘So it’s not like you can just whip up a chip fab. It’s just like, yeah, just make a quick chip fab.’

The price increases means Tesla’s$39,000 Cybertruck is the company’s cheapest vehicle, but it is still unavailable for purchase – production is set for 2022

The price increases means Tesla’s$39,000 Cybertruck is the company’s cheapest vehicle, but it is still unavailable for purchase – production is set for 2022

However, the chip shortage did not stop Tesla when it came to its current vehicle line up.

Musk said that the firm was able to substitute alternative chips and then write the firmware in a matter of weeks.

‘It’s not just a matter of swapping out a chip. You also have to rewrite the software,’ he continued.

‘So it was an incredibly intense effort of finding new chips, writing new firmware, integrating with the vehicle and testing in order to maintain production.’

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