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Tesla will raise U.S. prices for Model Y vehicles by $1,000 on April 1

Pedestrians pass a Tesla store in Shanghai, China, March 14, 2024.

CostPhoto | Nurphoto | Getty Images

Tesla on Friday said it will raise prices for all Model Y cars in the United States by $1,000 starting April 1, the automaker said on its website.

“Prices will increase by $1,000 for all Model Y trims starting April 1,” Tesla said on its website.

On March 1, the company had also raised prices of its Model Y rear-wheel-drive and long-range vehicles by $1,000 to $43,990 and $48,990, respectively.

Tesla has not explicitly clarified whether the April increase will be in addition to the March increase for rear-wheel and long-range models.

Tesla had temporarily cut prices on some of its Model Y cars in the United States in February, nearly a month after cutting prices in Europe and China.

“This is the essential dilemma of manufacturing: Factories need continuous production to be efficient, but consumer demand is seasonal,” CEO Elon Musk said in February, responding to a post on Tesla’s it said prices would rise in March.

Tesla intends to raise prices in Europe too

Separately, Tesla said Saturday it will raise the price of its Model Y electric vehicles (EVs) in several European countries on March 22 by about 2,000 euros ($2,177) or the equivalent in local currencies.

Tesla’s margins have been hurt by a price war with rivals that began more than a year ago.

In January, Tesla warned of “noticeably lower” sales growth this year as it focuses on production of its next-generation electric vehicle, codenamed “Redwood.”

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