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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A dozen Tesla vehicles burned at a store in Toulouse, France. Arson is suspected amid global protests and vandalism attacks against Tesla and Elon Musk.
Last night, a dozen Tesla vehicles burned down at Tesla’s retail and service location in Plaisance-du-Touch near Toulouse, France.
Firefighters arrived on the scene at around 4 a.m. and contained the fire to the vehicles. Eight of them were completely destroyed, and four were greatly damaged. The damages are estimated at over 700,000 euros.
According to the local news (translated from French), the police suspected arson as a hole was found in a fence, and threats had been made over the last few weeks. The Tesla location remained closed all day.
Tesla is currently being protested by anti-fascist groups around the world, especially in the US, where many are targeting Tesla to protest against Elon Musk’s involvement in the US government.
In France, there were a few protests planned, but some extremist groups are calling for widespread arson against Tesla stores:
I won’t share the link to the article since it gives step-by-step instructions on how to burn down Tesla stores without getting caught, but the manifesto explains that they are going after Tesla as a “symbol of capitalism,” although they also list a dozen other reasons including the fact that they think it’s “doable and cheap.”
Electrek’s Take
This is getting nuts. It’s not only dangerous, but it’s also not super effective in achieving the goal they claim to want to achieve.
Have they never heard of insurance? Tesla is having issues selling cars right now. You are burning unsold inventory that they can then claim to their insurance.
Sure, it disrupts their operations for a short period of time, but it’s not worth it.
Their manifesto does say to avoid violence and not to target vehicles owned by individuals – though it doesn’t sound like a strict rule for them, but I think these people are likely going to end up in jail for having achieved nothing.
The protests and boycotts are going strong. You don’t need to burn cars to make yourself heard.
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Environment
Ford F-150 Lightning sales have been falling for months: What’s going on with the EV pickup?
Is Ford’s electric pickup in trouble? Sales have been down for months, and February showed no relief. What’s going on with the Ford F-150 Lightning?
Ford F-150 Lightning sales drop again in February 2025
Ford’s US sales dropped by 9% last month. Although electrified vehicles, including EVs and hybrids, both notched double-digit growth, sales of Ford’s gas-powered (ICE) models, which accounted for over 85% of deliveries, fell nearly 13%.
Hybrids saw higher demand with sales up 27.5% to 15,357, while EV sales increased 15% to 7,326. The Mustang Mach-E was a bright spot with 3,312 models sold in February, up 13% from the prior year.
With 6,841 Mach-Es sold through the first three months of 2025, Ford’s electric crossover SUV remains a top-selling EV in the US.
Ford’s electric pickup didn’t fare as well. F-150 Lightning Sales were down nearly 15% last month with only 2,199 units sold. Through March, Ford has sold 15% fewer Lightning models than it did at this time last year.
Sales of the electric pickup have been slipping for months now. In the final three months of 2024, F-150 Lightning sales were down 10%.
The Lightning, alongside Rivian’s R1T, are no longer the only electric pickups on the market. Ford is facing new competition with the Tesla Cybertruck, Chevy Silverado EV, and GMC Sierra EV, arriving.
According to Cox Automotive, the Tesla Cybertruck slipped past the Lightning to become the fifth best-selling EV in the US last year with nearly 39,000 units sold. Ford’s Lightning was sixth with just over 33,500 models sold.
Ford extended its “Power Promise” promo earlier this year to boost demand, giving EV buyers a Level 2 home charger and other benefits, but Lightning sales are still down.
The American automaker cut Lightning production at its Rouge Electric Vehicle Center last year, citing slower-than-expected demand. A new report from Automotive News claims Ford is now ending a pilot program to stock and distribute EVs through regional hubs after it failed to catch on. It was designed to speed up deliveries.
Although Ford plans to launch a smaller midsize electric pickup, it won’t arrive until at least two more years. With new competition, like the Ram 1500 REV and Volkswagen Scout pickup, hitting the market over the next few years, Ford may find it even harder to attract buyers.
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Costco’s Auto Program recently introduced some new member-only incentives, and the 2025 Volvo EX90 BEV is now on its list.
Volvo is offering Costco Executive Members $2,000 off the 2025 EX90. Costco Gold Star and Business members are eligible for $1,500 off. The incentives are available on all versions of the Volvo EX90 for members who purchase or lease from February 24 to April 30, 2025. It’s the only non-GM EV that’s that’s eligible for an incentive through the EV program.
The offer is compatible with A-Plan pricing for employees, as well as Affinity Pricing for teachers and first responders. Costco members will have had to have been members as of February 23 and be the primary members on the Costco account to qualify.
However, CarsDirect gave the heads up on how buyers can get up to $10,000 off the EX90’s MSRP. As we stated, if you’re a Costco Executive Member, that’s $2,000 off. Then, add the $7,500 EV Lease Allowance and a $500 loyalty discount on leases if you currently own or lease a Volvo or have owned or leased a Volvo within the past six months.
With the destination fee included, the base EX90 MSRP starts at $81,290, so that brings it down to $71,290, a more than 12% discount, a pretty good deal.
The 2025 AWD Volvo EX90, which can seat seven passengers comfortably, has a range of up to 310 miles and is NACS-compatible. It has a 510 hp engine, 110 kWh battery capacity, and can go from 0-60 mph in 4.7 seconds.
Read more: Review: Volvo EX90 is a smooth AWD 7-seat luxury kid-hauler
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