Tesla is raising prices on its most common electric vehicles yet again, this time by thousands of dollars, as microchip shortages continue to cause production delays. Elon Musk’s electric car company has raised the price of its Model 3, the least expensive model and the world’s best-selling plug-in car, by $3,000 so far this year, a rise of more than 8%. According to archived versions of the company’s website, the regular Model 3 sedan was selling for $39,990 on Friday, up from $39,490 earlier this week and $36,990 in late February.
The Standard Range Plus model, which comes standard with rear-wheel drive and an EPA-estimated range of 263 miles, is the Model 3’s entry point. The Model 3 Long Range, which has all-wheel drive and a range of 353 miles according to the EPA, now starts at $50,190. The Model Y’s Standard Range model was discontinued earlier this year, so the Long-Range Model’s starting price is the same as the Long-Range Model’s. According to the EPA, it can fly 326 miles on a single charge. The Model 3 from Tesla is still more expensive than other electric vehicles on the market today, but it has a longer range. The Model Y Long Range costs more than the Ford Mustang Mach-E California Route 1, which has a 305-mile range according to the EPA.
On Friday, the Model 3’s more expensive “long range” model was selling for $48,990, up $500 from earlier in the week and $3,000 since February. According to Dan Ives, managing director and tech analyst at Wedbush Securities, the automaker could lift prices by another 3 to 5% this year. “Because of chip shortages and production problems, Tesla is now experiencing a boom in demand, which has resulted in price rises rather than decreases,” Ives said. “Tesla is still in a tremendous place of strength.”
Tesla didn’t boost the price of its most expensive Model 3, the “performance” version, this week, but it has increased it by $1,000 since February. The California-based corporation did not immediately respond to a request for comment. It is reportedly under investigation by its home state’s Department of Motor Vehicles over concerns that its vehicles are “self-driving.” The Model 3 isn’t the only Tesla whose price has gone up. On Friday, the Model Y, Tesla’s larger sedan, cost $51,990, up from $51,490 earlier this week and $48,990 in February.
Meanwhile, the price of Tesla’s latest, higher-end Model S appears to have remained unchanged this year, starting at $79,990. In the first quarter of 2021, the electric automaker delivered 184,800
cars, exceeding analyst estimates. Revenue increased to $10.39 billion from $5.99 billion a year ago, according to the company’s April earnings report.
