the price is a roller coaster, and if you’re a prospective buyer, you’ve been holding on for a long time now. The price of Tesla models fluctuates frequently as the electric vehicle and energy company struggles to survive and thrive in a rapidly changing industry with new players arriving every month. they just got turned down less than a month ago. Now, the automaker has raised the prices of the Model Y again. Here’s why.
Why Tesla Model Y prices are so volatile
If the Tesla Model Y pricing has made your head spin, you’re not alone. Model Y prices have gone up and down for years for a variety of reasons. Supply, tax incentives, and a competitive market are just a few of the main reasons Tesla Model Y prices seem like they can’t sit still.
, Hyundai Ioniq 5 and Mustang Mach-E all pose a real threat to the Model Y. Tesla’s small electric SUV once dominated its segment. It is rapidly losing market share and the company needs to act fast.
Eligibility for federal electric vehicle tax incentives is a huge driving force behind the price fluctuations of any electric vehicle. Unfortunately, tax credit eligibility is very unclear to consumers, especially as a result of the .
The revised incentive favors American-made EVs to promote the sale of American-made EVs and support American EV assembly jobs. This revision excludes many foreign vehicles. Fortunately, Tesla is an American company and assembles many of its electric vehicles in the United States. Now that Tesla qualifies for tax credits again, it’s a whole new game for the company.
How much does the 2023 Tesla Model Y cost?
As of Feb. 6, 2023, the 2023 Tesla Model Y starts at $54,990, according to . After a $7,500 incentive, the Model Y’s starting price is closer to $47,490 before taxes, fees and additional local incentives. This is the most affordable Model Y starting price in a while.
A starting price of $47,490 after redeeming the tax credit puts the Model Y in direct competition with more affordable small electric SUVs. Is Tesla positioned to dominate the market in 2023? Let’s break down the specs to see how it fares against its rivals.
Tesla Model Y Long Range Specs
The is available in two trim levels: Long Range and Performance. The Model Y Long Range can travel an impressive 330 miles of range (according to Tesla). Edmunds claims the Model Y Long Range can go 0-60mph in 4.8 seconds.
If you want a Tesla Model Y, there hasn’t been a better time to get one in months. That said, keep in mind that Tesla models have struggled with reliability issues. According to Tesla’s website, the Model Y only qualifies for the revised tax incentive through March 2023.
Let us know if you think the 2023 Tesla Model Y is worth buying now that it’s eligible for a tax incentive in the comments section below.
