Tesla is raising prices on most of its vehicles — some by as much as $5,000 — according to reports from Electrek and The Verge. This lies in stark contrast to Chevrolet, who earlier this month announced that it would drop the prices on its Bolt and Bolt EUV by $5,900 and $6,300 respectively.
Tesla Price Hikes
Tesla raised its prices on most of the vehicles in its lineup this week. It marks the third price increase in 2022, on top of the numerous price increases the year before. In April, Tesla’s CEO Elon Musk had cited “significant recent inflation pressure in raw materials and logistics,” as the cause of that month’s price hike. But no explanation was given for this June increase.
All variants affected by the increase are listed below. All prices include Tesla’s $1,200 destination and documentation fee:
Tesla Model 3 Long Range now starts at $59,190 — a $2,000 increase
Tesla Model Y Long Range now starts at $67,190 — a $3,000 increase
Tesla Model Y Performance now starts at $71,190 — a $2,000 increase
Tesla Model S Dual Motor AWD Long Range now starts at $106,190 — a $5,000 increase.
Tesla Model X Dual Motor AWD Long Range now starts at $122,190 — a $6,000 price increase.
The least expensive Tesla, the Model 3 Rear-Wheel Drive, missed out on this wave of price hikes and continues to start at $48,190, including destination.
For perspective, when the Model 3 was first introduced back in 2016, it was advertised as having a starting price of $35,000. But if you wanted one of the earliest units, the Model 3 actually cost $50,000. The $35K model became something of a unicorn, as it existed only as a secret menu item for a short time. If you’re curious, we actually bought one in late 2019.
When we ordered Edmunds’ long-term Tesla Model Y back in 2019, the Performance trim cost us $61,125. Since then, the price has gone up roughly $10,000.
Chevrolet Price Drops
The 2022 version of the Chevrolet Bolt is notable for two things: a comprehensive refresh that solved many of the comfort and perceived quality issues of older models, and a starting price $5,500 lower than the previous year. For 2023, the Bolt receives another price cut of $5,900, for a starting price of $26,595 (including destination) on the base 1LT trim and $29,795 for the top 2LT trim.
The Chevrolet Bolt EUV debuted just last year but also benefits from a price cut. The 2023 model will now start at $28,195 (includes destination charge) for the LT model and $32,695 for the top-tier Premier — a reduction of $6,300 for each trim. We think these price changes were needed to keep the Bolt competitive. Not only is General Motors one of the only manufacturers to run out of federal EV tax credits, but the affordable EV segment has become a lot more crowded since the Bolt was first introduced.
There’s another bit of good news for potential Bolt and Bolt EUV customers. Those in need of a new EV this year won’t have to wait until 2023 to benefit from the price drop. While the MSRP will formally change on next year’s models, Chevrolet has made the same price cuts available on 2022 Bolts and Bolt EUVs in the form of customer cash incentives for those who finance rather than lease.
Note that while it’s commendable that Chevrolet slashed prices on the Bolt, General Motors isn’t immune to the supply chain price increases. Today, the automaker announced that it would increase prices of the flagship Hummer EV pickup by $6,250.
Inflation and the rising costs of supplies have taken a toll on many automakers. Some have chosen to tolerate these costs eating into their profits, while others pass that burden on to their customers.