The Tesla Model Y just got more expensive…again
Unfortunately for consumers, the Tesla Model Y is no stranger to price fluctuations. The Model Y was once affordable, especially after applicable EV tax credits. Today, the Model Y has zoomed even further away from the average American consumer’s vehicle budget.
According to Electrek, the Tesla Model Y’s lowest price currently stands at $57,990 for the Long Range Trim. The Performance trim starts at a whopping $62,990. Even with incentives, the prices for both vehicles is north of $50,000. This is completely abnormal for the average crossover, confirming that Tesla vehicles are priced as luxury vehicles.
The popular Tesla Model 3 and Model Y once both started at $39,990 for base model trims. After tax incentives, these prices were much closer to that of the average sedan and crossover SUV model. The coveted electric vehicles were attainable at those prices, but now it seems they will be reserved for consumers willing to spend $50k on a new vehicle.
The Tesla Model Y has retained its popularity throughout its many price changes, but today it has better rivals than when it debuted. The Ford Mustang Mach-E is considered to be EV of the year. The Model Y’s price increase may have major repercussions this time around.
How does the Tesla Model Y’s price compare to other vehicles in its class?
The 2022 Ford Mustang Mach-E Select trim starts at $42,895. After EV tax credits, the Mach E Select’s price becomes $35,395. This price is still higher than the average new gas-powered compact SUV, but the Ford Mustang Mach-E provides plenty of value for its price. It’s practically an electric muscle car with SUV space and comfort.
The Toyota RAV4 is currently the most popular compact SUV in America, and it starts at just $26,350. The Honda CR-V, another of the most popular compact SUVs, starts at just $25,750.
The Tesla Model Y’s price is leap and bounds ahead of all the popular compact SUVs on the market. This is going to hurt the Model Y in the long run because, as Toyota has demonstrated, consumers flock to what’s affordable.
Why the Tesla Model Y’s new price is bad for EVs
The electric future is inevitable, but some folks sure are doing a great job at trying to prevent it. President Joe Biden has recently proposed a new $12,500 EV tax credit. The caveat is, it only applies to EVs that are made in the U.S. by unionized workers. The last EV made in the U.S. by unionized workers literally went up into flames. The Chevy Bolt’s demise is a warning for the entire automotive industry.
There are bound to be obstacles on the long journey to an emission-free automotive industry. While a $12,500 tax credit would be great if it were passed, it would be even better if it applied to more popular EVs.
The Tesla Model Y’s price increase is another obstacle because it will be less accessible to consumers. The Model Y can remain on top of EV sales for the moment, but once consumers find a more affordable alternative like the Mach-E, it’s lights out for Tesla’s electric crossover.