For the eighth time in 2021 alone, Tesla has increased the US price of the Model Y, the company’s mid-size SUV, with prices now $US9,000 up on where they were at the beginning of the year.
The base price of the Tesla Model Y Long Range now sits just under $US59,000, an increase of $US1,000, while the Model Y Performance has also seen a $US1,000 price jump and now starts at $63,990.
While a $US1,000 price increase may not be the end of the world – especially on a vehicle which already costs near to $US60,000 – the real issue is the fact that at the beginning of the year the Model Y Long Range was selling for only $US50,000, and has seen its price jump by nearly 20 per cent over the year.
Of course, car prices have been escalating everywhere, but many are still unimpressed with Tesla’s decision to again increase the price of the Model Y, as the cost of manufacturing should theoretically decrease over time as production ramps up, is made more efficient, and the costs of parts such as the battery should also be decreasing.
However, battery prices remain a problem everywhere, not only as manufacturers seek to sidestep material sourcing issues but also as the world continues to step out from underneath the impact of the global COVID-19 pandemic.
There might be good news on the horizon for Americans, however, who are looking to buy a new Tesla, as US President Joe Biden’s pending Build Back Better Act should hopefully offer a $US7,500 tax credit for buying an electric vehicle.
Conversely, though, it is unclear whether this tax credit would be retroactive for vehicles delivered during parts of 2021, or whether it will only be for new electric vehicles bought in 2022 and forwards.
Not yet available in Australia, the Model Y nevertheless recently cleared an important regulatory milestone after Australia’s infrastructure department issued the Tesla Model Y with a vehicle type approval under the new Road Vehicle Standards (RVS) legislation. However, deliveries are nevertheless not expected before the second quarter of 2022.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.