After huge cuts, Tesla raises Model Y price… but not by much
Tesla has increased prices on new Model Ys, in a slight reversal after drastic cuts just two weeks ago.
The changes went live on Tesla’s website tonight, and only seem to affect the Model Y, Tesla’s most popular vehicle. However, in contrast to the massive price cuts of up to $13K, the Model Y has been bumped in price by just $500.
This brings it to a base price of $53,490, as opposed to $52,990 prior to this bump. The Model 3, X, and S all maintain the same post-cut prices as before.
The recent price cuts came after weeks of signals from Tesla that demand might not have been keeping up supply, with Tesla offering discounts and incentives in various regions as inventory started to pile up. Tesla had hiked prices significantly over the course of 2021-2022 as EV demand far outstripped supply, and had little trouble selling out of vehicles until the end of the year.
We here at Electrek noted that the result of these massive cuts could lead to an EV price war, which Tesla seems poised to do well in. Though this will cut into Tesla’s high margins, its margins are higher than other companies in the space, which gives it leeway to cut prices when supply gets to the point that it can keep up with demand.
And in the weeks since that price drop, Tesla has seen “unprecedented demand” on these vehicles. Not only was the Model Y price dropped by $13K, but this also put it into range to qualify for the US EV tax credit, meaning a $20K price drop for many customers, as long as they take delivery before March when tax credits are expected to change once again.
Notably, today’s price bump does again make a difference for EV tax credit eligibility. At the previous base MSRP of $52,990, up to $2,000 in options could be added before the 5-seat Model Y reached the government’s $55,000 MSRP limit to be eligible for tax credits. This meant that buyers could choose any paint color (which cost up to $2,000) or could choose the $2,000 20-inch wheels and just skate in under the limit.
Now, adding the most-expensive red multi-coat paint color or the 20-inch wheel option take the MSRP above $55,000, which means Model Ys with those options will not qualify. At this point, the only options a 5-seat Model Y can choose to still qualify for tax credits are silver, blue, or black paint or a tow hitch (though the hitch can be added after purchase, which we’d recommend if you’re getting any other options).
Tesla also made another change tonight – it now quotes the actual MSRP of the vehicle upfront, instead of including “potential savings” from gas and incentives:
Tesla has gone back and forth on this over the years. The previous method has been criticized for being potentially misleading, quoting a price far lower than a customer would pay. But Tesla, somewhat correctly, argues that it’s a more realistic comparison in terms of lifecycle vehicle costs. Tesla does offer a calculator so you can figure out your own gas savings based on annual vehicle miles, electricity rate, and gasoline costs, but would previously include average estimates of those upfront, while now they’re behind a “learn more” link:
Electrek’s Take
We’ve received a lot of angry emails recently from Model Y buyers about the price cut, feeling aggrieved that they purchased a vehicle that they could have gotten for cheaper had they just waited a little longer.
But, such is the case with purchases – sometimes the price changes, and sometimes you don’t get the best price. C’est la vie.
That said, this price change was sudden and massive, so the complaints are more reasonable this time around. Usually pricing doesn’t change so much so quickly, and usually those price changes aren’t done by a company that has repeatedly stated that “the price is the price” and that it wants to buck the dealership model and stick with transparent, predictable pricing.
Price bumps like these are a little more reasonable, as a 1% difference in price of a vehicle isn’t going to break most people’s bank. But it still violates Tesla’s “we don’t want to jerk prices around like a dealership” model, given that this happened just under two weeks after a huge price cut. There was one point long ago where it was easy to keep up with Tesla pricing, but that hasn’t been the case for a while now.
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Environment
U.S. Steel shares rally as Trump approves Nippon takeover with unique government ‘golden share’
Trails of Iranian ballistic missiles light up the night sky as seen from Gaza City during renewed missile strikes launched by Iran in retaliation against Israel on June 15, 2025.
Anadolu | Anadolu | Getty Images
Tehran will “pay the price” for its fresh missile onslaught against Israel, the Jewish state’s defense minister warned Monday, as markets braced for a fourth day of ramped-up conflict between the regional powers.
Fire exchanges have continued since Israel’s Friday attack against Iran, with Iranian media reporting Tehran’s latest strikes hit Tel Aviv, Jerusalem and Haifa, home to a major refinery. CNBC has reached out to operator Bazan for comment on the state of operations at the Haifa plant, amid reports of damage to Israel’s energy infrastructure.
Iran’s Revolutionary Guard said overnight it deployed “innovative methods” that “disrupted the enemy’s multi-layered defense systems, to the point that the Zionist air defense systems engaged in targeting each other,” according to a statement obtained by NBC News.
Israel has widely depended on its highly efficient Iron Dome missile defense system to fend off attacks throughout regional conflicts — but even it can be overwhelmed if a large number of projectiles are fired.
The fresh hostilities are front-of-mind for investors, who have been weighing the odds of further escalation in the conflict and spillover into the broader oil-rich Middle East, amid concerns over crude supplies and the key shipping lane through the Strait of Hormuz connecting the Persian Gulf and the Gulf of Oman.
Oil prices retained the gains of recent days and at 09:19 a.m. London time, Ice Brent futures with August delivery were trading at $73.81 per barrel, down 0.57% from the previous trading session. The Nymex WTI contract with July expiry was at $72.7 per barrel, 0.38% lower.
Elsewhere, however, markets showed initial signs of shrugging off the latest hostilities early on Monday.
Spot prices for key safe-haven asset gold retreated early morning, down 0.42% to $3,417.83 per ounce after nearly notching a two-year-high earlier in the session, with U.S. gold futures also down 0.65% to $ 3,430.5
Tel Aviv share indices pointed higher, with the blue-chip TA-35 up 0.99% and the wider TA-125 up 1.33%.
European stock markets opened higher Monday, meanwhile, and U.S. stock futures were also in the green.
Luis Costa, global head of EM sovereign credit at Citigroup Global Markets, signaled the muted reaction could be, in part, attributed to hopes of a brisk resolution to the conflict.
“So markets are obviously, you know, bearing in mind all potential scenarios. There are obviously potentially very bad scenarios in this story,” he told CNBC’s “Europe Early Edition” on Monday. “But there is still a way out in terms of, you know, a faster resolution and bringing Iran to the table, or a short continuation here, of a very surgical and intense strike by the Israeli army.”
U.S. response in focus
As of Monday morning, Israel’s national emergency service Magen David Adom reported four dead and 87 injured following rocket strikes at four sites in “central Israel,” reporting collapsed buildings, fire and people trapped under debris.
Accusing Tehran of targeting civilians in Israel to prevent the Israel Defense Forces from “continuing the attack that is collapsing its capabilities,” Israeli Defense Minister Israel Katz, a close longtime ally of Prime Minister Benjamin Netanyahu, said in a Google-translated social media update that “the residents of Tehran will pay the price, and soon.”
The IDF on Sunday said it had in turn “completed a wide-scale wave of strikes on numerous weapon production sites belonging to the Quds Force, the IRGC and the Iranian military, in Tehran.”
CNBC could not independently verify developments on the ground.
The U.S.’ response is now in focus, given its close support and arms provision to Israel, the unexpected cancellation of Washington’s latest nuclear deal talks with Iran, and President Donald Trump’s historically hard-hitting stance against Tehran during his first term.
Trump, who has been pushing Iran for a deal over its nuclear program, has weighed in on the conflict, opposing an Israeli proposal to kill Iran’s supreme leader, Ayatollah Ali Khamenei, according to NBC News.
Discussions about the conflict are expected to take place during the ongoing meeting of the G7, encapsulating Canada, France, Germany, Italy, Japan, the U.K. and the U.S., along with the European Union.
— CNBC’s Katrina Bishop contributed to this report.
A Tesla Model 3 got stuck on a train track and was hit, albeit slightly, by a train in Sinking Spring, PA. The driver claimed it was in “self-driving mode.”
According to the fire alerts in Berks County, a Tesla Model 3 drove around a train track barrier near South Hull Street and Columbia Avenue and got stuck in the tracks.
The driver was able to exit the vehicle, but a train hit the car, reportedly snapping off the side mirror.
The fire commissioner ordered to stop all train traffic as the emergency services worked to get the Model 3 off the tracks using a crane.
Spitlers Garage & Towing, performed the recovery and shared a few pictures on Facebook:
The Tesla driver reportedly claimed that the vehicle was in “self-driving mode” leading up to getting stuck on the train tracks.
Tesla claims that all its vehicles built since 2016 will be capable of unsupervised self-driving with software updates; however, this has yet to occur.
Instead, Tesla has been selling a “Full Self-Driving” (FSD) package for up to $15,000 that requires the driver to constantly supervise the vehicle, with the driver remaining responsible for the car at all times.
Electrek’s Take
There have been instances of Tesla drivers engaging in reckless behavior and then attributing it to the Full Self-Driving (FSD) features.
I’m not saying it’s the case here, but it’s a possibility.
On the other side, I’ve seen FSD try to navigate around construction barriers. It’s possible that it tried to do that in this case, here and then got caught on the tracks.
We would need more data.
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