Tesla Implements Temporary Discount Strategy, Raises Model Y Prices Again

Mar 06, 2024 04:13 AM EST

TESLA RED CAR PARKED ON ASPHALT ROAD — (Photo : PEXELS/Kevin B)

In a recent move to roll out temporary discounts, Tesla has opted to raise the prices of certain Model Y vehicles in the U.S. market. Earlier this month, Tesla introduced a limited-time $1,000 discount on Model RWD and Model Y Long Range, set to expire on March 1st. Notably, the company, led by Elon Musk, has now adjusted the prices of these Model Y variants upwards by $1,000, as reflected on the official Tesla website.

Price Hike: Discount Availability

This pricing strategy, according to an Electrek report, is a relatively new one for Tesla. Although it has a reputation for regularly changing prices. The corporation has historically avoided direct reductions in favor of free Supercharging and other incentives, especially at the end of fiscal quarters. Industry watchers conclude that the Model Y's temporary $1,000 discount was intended to take advantage of the increased interest in electric cars that comes with big events like the Super Bowl.

Tesla acknowledged the increase in interest sparked by rival automakers' Super Bowl advertisements. Even though it did not run one of its own during the game. Notably, as of March 1 Tesla reinstated the original pricing for the Model Y RWD. It raised the price of the Model Y Long Range by $1,000.

According to FoxNews, Tesla temporarily lowered the price of a few Model Y cars in the United States in February. This action came after the company had already lowered the price of similar vehicles in China and Europe over a month earlier.

Tesla CEO Elon Musk recently talked about the inherent difficulties in manufacturing and how important it is to maintain production efficiency even in the face of seasonal variations in customer demand. In reaction to a Tesla announcement on X (formerly Twitter) about impending price increases in March, this commentary was made.

Tesla's Ultimate Competitor

As reported in Reuters, the existence of competition between two leading companies in the electric vehicle sector signifies a pivotal shift within the industry. Though they claim otherwise, established automakers like Ford Motor, General Motors, and Volkswagen have not yet provided serious opposition to Tesla's long-standing hegemony in the zero-emission vehicle market.

Meanwhile, the emergence of BYD from China has propelled it ahead, culminating in the overtaking of Tesla in sales during the last quarter of 2023. Nevertheless, from an industry standpoint, the current debate over the leading player holds relatively little significance.

Meanwhile, The Wall Street Journal on Wednesday, BYD made headlines by introducing an enhanced iteration of its most affordable electric vehicle, the Seagull, while also significantly reducing its initial price. This move amplifies the ongoing price battle in response to escalating competition within China, which stands as the largest automobile market globally. Specifically, the updated version of the Seagull witnessed a noteworthy 5% reduction in its starting price, now standing at 69,800 yuan ($9,698).

Just two days following the introduction of its new Yuan Plus crossover at a reduced starting price of CNY119,800, marking a 12% decrease from its predecessor, BYD implemented a price reduction for the updated Seagull model. Concurrently, Tesla, a key competitor, bolstered its incentives in China by offering insurance subsidies. This strategic move came on the heels of the U.S. automaker's earlier price adjustments, which included a 5.9% reduction in the starting price of the Model 3 and a 2.8% decrease in the price of the Model Y back in January.