Will this stop buyers? Not a chance.
The mystery surrounding Tesla price increases was finally answered earlier this month by none other than Elon Musk himself. The nearly monthly $500 price jumps for the Tesla Model Y and Model 3 have been due to supply chain issues rather than the automaker trying to squeeze more money out of customers due to high demand. Despite the Model 3 costing $2,500 less in March, for example, there's been no indication demand has decreased.
And now another price increase has struck, this time the Model Y. As first reported by Electrek, the entry-level Model Y Long Range underwent an overnight $500 price jump a few days ago. The new cost of entry has climbed to $52,990.
These $500 increases certainly add up because this exact Model Y configuration cost $50,000 only a few months ago. Chances are this won't slow down Model Y demand in the slightest. Those who can afford to spend at least $50k on any new vehicle can easily put up a little more money. Plus, Tesla customers are known for packing on the options which add up to thousands of additional dollars. Musk previously said he believes the Model Y has the potential to become the world's best-selling vehicle in the coming years.
Production currently takes place in Fremont, California and Shanghai, China. Two new Model Y assembly lines at the still under construction Austin, Texas and Berlin, Germany Gigafactories are due to become operational shortly.
Those looking to spend the least amount of money on a new Tesla will have to opt for the Model 3 sedan, which begins at $39,990. But again, don't be surprised to see that number hit $40k or more in the near future. There was a time when Musk promised the Model 3 could be bought for as little as $35k, but that didn't last long. The combination of rising supplier costs and the elimination of the slow-selling base version pushed the price higher.
Tesla is rumored to be developing a new $25k model for the vital Chinese market but it remains unknown whether it'll be sold stateside.