Tesla raises cost for Model Y SUV after cutting $1K off price tag

Tesla, the Austin-based electric vehicle company run by CEO Elon Musk, quietly announced the price increase on a website advertisement for its Model Y SUV vehicle. It’s easy to miss, but the flashing ad undoubtedly states that “prices will increase by $1,000 for all Model Y trims on April 1.” 

The Model Y starts at a price of $36,490 after a federal tax credit is applied, according to the ad. But looking at the current Tesla inventory for that vehicle, the average cost will run customers between $45,000 and $52,000. 

Prices for the Model Y have fluctuated this year with Tesla’s announcement that the vehicle would be $1,000 less in February to incentivize more people to buy the car. “Since most people don’t love to buy cars in the middle of winter,” Musk posted on X (formerly Twitter.)

The company said in its own X post that prices would rise again in March, which equated to about a $1,000 increase after the February sale. 

Toyota previously held the top ranking in past years with the RAV4 and the Corolla models, and those two models currently hold second and third place respectively. The Tesla transition demonstrates not only the popularity of the company, but also the eventual turn to electric vehicles across the globe.