While electric cars from Tesla have been wildly popular, the company has implemented a dizzying array of price increases (and price cuts) over the years. Whether it's a higher MSRP, discontinued EV trims, or more extra features, we'll attempt to help keep track of Tesla price increases and other noteworthy price changes.
Although Tesla dominates our list of EVs with the longest range, the cheapest Teslas are considerably more expensive than in the past. Fortunately, changes as a result of the Inflation Reduction Act have once again made some Teslas eligible for a $7,500 tax credit, and recent price cuts have made Teslas more affordable.
Updated on January 13th, 2023
Why Did Tesla Prices Go Up?
Like other automakers, Tesla periodically raises prices based on production costs. However, Tesla is unlike most major brands because it also has a long track record of adding and taking away trims, raising and lowering prices, and offering so-called "off-menu" vehicles.
Tesla delivery schedules saw major order delays as a result of the ongoing global chip shortage. Currently, Tesla's lineup consists of the following vehicles: Model 3, Model Y, Model S, and Model X. Be sure to check back for possible changes as we learn about them in 2023.
Are Tesla Prices Going Down?
On January 13th, 2023, Tesla cut prices on just about every model by up to 20%. Because of this, some of the brand's EVs now fall under an important MSRP cap, making them eligible for a $7,500 tax credit. This marks an unusually good time to buy a Tesla given the numerous price hikes we've seen in the past.
In late December of 2022, Tesla unveiled a late-month deal involving a $7,500 December delivery discount on the Model 3 and Model Y. In addition, the company offered 10,000 miles of free Supercharger access. While these were temporary Tesla incentives, they did create excitement among new Tesla buyers.
Higher commodity costs and strong customer demand may make it hard for Tesla to offer cheaper prices in the future. Having said that, Tesla's 4680 battery cells promise better range and lower production costs in future vehicles. Unfortunately, uncertainty surrounding the Inflation Reduction Act may create obstacles.
For example, guidance from the US Treasury about a North American supply chain and mineral requirement is expected to come out in March 2023. If an EV fails to meet the new standards, it could lose the full $7,500 government tax credit. As a result, the January to March 2023 period could be an important time.
Sadly, some popular state plug-in rebates now exclude Teslas. Earlier this year, the California Clean Vehicle Rebate began excluding Tesla after an MSRP cap was established in March of 2022. The rule for the California Clean Vehicle Rebate (CVRP) has a $45,000 price cap on cars and $60,000 on SUVs.
January 2023 Tesla Price Increase
On January 24th, Tesla raised its MSRP for the 2023 Model Y by $500 to $53,490 excluding destination.
The finding was first reported by Electrek, and follows a steep round of price cuts a little over a week before.
January 2023 Tesla Price Cuts
On January 13th, Tesla implemented price cuts on most models.
For example, 2023 Tesla Model 3 prices were lowered to $43,990 from $46,990, a $3,000 price cut. With the destination charge of $1,390, the cheapest Tesla now starts at $45,380. Like other Teslas, the car temporarily qualifies for a $7,500 tax credit.
When it comes to Tesla Model Y prices, EV buyers can enjoy a lower MSRP of $52,990 excluding destination. That's a $13,000 advantage, or 20% price cut, compared to before. Now, it falls under the $55,000 MSRP cap of the Inflation Reduction Act, making it eligible for a $7,500 tax credit until March 2023.
Further up the range, Tesla Model S prices start at $94,990 excluding destination. Meanwhile, Tesla Model X prices now start at $109,990. The most expensive Tesla, the Model X Plaid with Full Self-Driving Capability (FSD), rings in at $134,990.
Despite these price cuts, our analysis found that Tesla lease prices may not add up and haven't improved as much as one would think.
January 2023 Tesla Tax Credit Changes
On January 1st, Teslas became eligible for a $7,500 tax credit again because a 200,000-vehicle sales cap was lifted as a result of the Inflation Reduction Act. While the EV tax credit does have an MSRP cap as well as an income cap, this does create an opportunity for buyers.
However, it remains unclear just how much a North American supply chain and minerals requirement will affect Tesla's eligibility. Updated guidelines are expected to be announced by the US Treasure in March 2023, and could cut the incentive in half to $3,750 for consumers.
September 2022 Tesla Price Increase
Beginning on September 5th, 2022, the cost of Tesla Full Self-Driving increased to $15,000.
The change was announced by Tesla CEO Elon Musk in a tweet on August 21st. This represented a $3,000 price increase from the previous MSRP of $12,000.
Tesla said that it would honor old FSD pricing for orders made prior to the price increase.
June 2022 Tesla Price Increases
In June 2022, Tesla raised prices on every model in response to increased supply chain costs. However, not every configuration was affected.
The 2022 Model X Dual-Motor saw the biggest price increase worth $6,000 from $114,990 to $120,990.
The Model S AWD Dual Motor saw a $5,000 price increase from $99,990 to $104,990.
The Model Y Long Range saw a $3,000 change from $62,990 to $65,990. The Performance model went up $2,000 from $67,990 to $69,990.
The Model 3 was affected as well, but only on one configuration. The Model 3 Long Range got a $2,500 price increase from $54,490 to $57,990.
April 2022 Tesla Price Increases
Tesla increased MSRP pricing for certain versions of the Model 3 in early April.
First, the Model 3 Long Range with AWD went up by $1,500 to $57,190 including destination. Second, the Model 3 Performance went up by $1,000 to $64,190. The changes were reported on April 7th by the website InsideEVs.
Base pricing for the Model 3 with RWD continues to start at $48,190.
March 2022 Tesla Price Increases
Tesla increased prices by up to $10,000 in multiple price hikes affecting its entire lineup. In the case of the Model 3 and Model Y, the price increases exceeded MSRP caps set by the California Clean Vehicle Rebate Project, or CVRP, resulting in both models being barred from the $2,000 plug-in rebate.
In early March, Tesla increased Model 3 Long Range prices and Model Y prices by $1,000, based on the company's website. A week later, the company raised prices on even more models, according to Electrek.
The cheapest Model 3 is $2,000 more expensive than it was before and now starts at $48,190 with destination. The Dual Motor AWD is $2,500 more expensive at $54,500, while the Model 3 Performance costs $3,000 more than it did before with an MSRP of $61,990.
At the same time, the Tesla Model Y got a $2,000 price increase to $62,990, though the Model Y Performance suffered from a larger price hike of $3,000 to $67,990.
On the higher end of the spectrum, the Tesla Model S received a $5,000 price increase to $99,990. The Tesla Model X saw a $10,000 price hike to $114,990.
March 2021 Price Increase
Tesla increased pricing for the range-topping Model S Plaid+ to $149,990 including destination, a $10,000 price increase.
Model 3 pricing rose $500 to $38,690, with a $1,000 price hike on the Model Y to $51,190.
October 2020 Tesla Price Cut
Tesla implemented a $3,000 price cut on the Model S. The MSRP for the Model S Long Range fell to $73,190 including destination (down from $76,190). The Model S Performance fell to $93,190, a $3,000 price cut. However, the range-topping Model S Plaid remained unchanged at $141,190. Some theorized that the coronavirus pandemic dashed Tesla's hopes of selling 500,000 cars in 2020 by forcing its factory to shut down.
Within the same week, Tesla cut Model S pricing by $2,570. The change took effect on October 14th, with Model S pricing falling from $70,620 down to $69,420. The news came shortly after EV startup Lucid claimed its Air sedan would undercut the Model S.
July 2020 Tesla Price Changes
On July 1, Tesla's Full Self-Driving (FSD) option saw a $1,000 price increase to $8,000. In a tweet, Elon Musk wrote "The FSD price will continue to rise as the software gets closer to full self-driving capability with regulatory approval," adding "the value of FSD is probably somewhere in excess of $100,000."
On July 12th, the company cut Model Y prices by $3,000. Elon Musk took to Twitter to announce the changes, stating "“We have reduced pricing on Model Y LR dual motor & will offer a LR single motor Y in a few months, which improves affordability, while still keeping the product excellent."
Following the change, Model Y Long Range pricing fell to $51,190 with destination. The Model Y Performance fell $1,000 to $61,190, gaining the previously-optional Performance Package, adding 21-inch wheels, lower suspension, a 155-mph speed limited, bigger brakes, and more.
May 2020 Tesla Price Cuts
Tesla cut prices by up to $5,000 in a bid to address sagging demand, according to a report from Reuters.
The Model 3 saw a $2,000 price cut to $39,190 with destination, while the Model S saw a $5,000 price cut to $76,190.
Model X pricing fell by $5,000 to $81,190. The only model that wasn't affected was the Model Y.
December 2019 Tesla Tax Credit Eliminated
The $1,875 federal EV tax credit on Tesla's lineup was eliminated on December 31, 2019. This concluded a long phase-out process that began in July 2018 when the automaker reached a 200,000-vehicle cap on cars eligible for the full value of the tax credit.
Although Tesla (and GM) lobbied for an extension of the tax credit, the move was unsuccessful in light of the Trump Administration's goal to reduce EV subsidies. A proposal attempted to increase the vehicle cap to 600,000 cars and added a $7,000 tax credit.
July 2019 Tesla Tax Credit Reduction
The federal tax credit on Tesla EVs was cut in half to $1,875 (down from $3,750). This marked the second step in a phase-out process that was triggered when the company exceeded 200,000 electric vehicle sales in July 2018. Earlier that year in January, the tax credit was reduced from $7,500 to $3,750.
May 2019 Tesla Price Increase
Tesla raised Model 3 pricing by $400 to $36,600 including destination. The vehicle in question was the Standard Range Plus, allowing the car to better compete with the Chevrolet Bolt EV (then priced at $37,495, with a range of 238 miles).
February 2019 Tesla Price Cut
Tesla cut pricing for the Model 3 by $1,100. CEO Elon Musk took to Twitter to tout the new price tag of $35,000.
However, a closer look found that the $35,000 Tesla actually cost $44,100 since Tesla was including the tax credit and estimated gas savings in its price, and wasn't factoring in a $1,200 destination charge.
January 2019 Tesla Tax Credit Change + Price Cut
Beginning on January 1st, 2019, the federal tax credit on Tesla's EVs was cut in half from $7,500 to $3,750. The automaker triggered a phase-out process in July 2018 after it sold more than 200,000 electric cars.
Tesla cut prices by $2,000 across the board shortly thereafter. The starting price for the Model 3 Mid-Range with RWD fell to $45,200, with the Model S 75D falling to $77,200 and the Model X 75D reduced to $83,200.
October 2018 Tesla Price Increase
Tesla increased pricing for the Model 3 Mid-Range by $1,000 less than a week after it went on sale.
This increased the cost of the $45,000 electric car to $46,000 before incentives. Previously, the Mid-Range offered an $8,000 advantage in price compared to the Model 3 Long Range Dual Motor car with AWD.
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