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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T1 Energy (NYSE: TE), formerly FREYR Battery, kicks off preparations for its new solar cell factory, set to be one of the largest in the US.
T1 Energy has chosen Yates Construction as the contractor for preconstruction services and site preparations for its planned $850 million, G2_Austin 5 GW Solar Cell Facility.
The G2_Austin site is in Milam County, Texas, in the Advanced Manufacturing and Logistix Campus at Sandow Lakes.
It’s expected to create up to 1,800 new direct US advanced manufacturing jobs. Construction is on track to kick off in mid-2025, and the facility is expected to begin producing cells by the end of 2026. There are currently far fewer solar cell manufacturing sites in the US than solar module factories, according to the SEIA.
On December 24, FREYR announced that it had closed its acquisition of China-headquartered Trina Solar’s 5-gigawatt (GW), 1.35 million-square-foot solar panel factory in Wilmer, Texas. The company renamed the factory G1_Dallas, which employs more than 1,000 people and is now fully online.
Daniel Barcelo, T1’s chairman of the board and CEO, said, “Our facilities will manufacture solar cells and modules to invigorate our economy with abundant energy. We’re excited to work with Yates and Milam County to bring American advanced manufacturing to the heart of Texas and to unlock our most scalable energy resources.”
T1 Energy says it anticipates finalizing commercial terms with Yates Construction as General Contractor.
Read more: FREYR rebrands after killing its $2.6B Georgia battery factory plans
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![Kia's affordable EV2 may be small, but it looks bigger in person [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/05/Kia-EV2-closer-look.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
The EV2 is set to arrive as Kia’s smallest and most affordable electric vehicle next year. With its official debut coming up, the electric SUV was spotted driving on public roads. The electric SUV may be small, but it looks bigger in person.
Kia’s new EV2 is an affordable, small electric SUV
Kia has yet to say precisely how big the EV2 will be, but it’s expected to be around 4,000 mm (157″), or slightly smaller than the EV3 at 4,300 mm (169.3″). That’s even more compact than the outgoing Chevy Bolt EV (163.2″).
During its EV Day event in April, Kia unveiled the Concept EV2, a preview of the entry-level EV that will sit below the EV3.
Although it’s the brand’s smallest EV, Kia promises that it will feel larger when you’re inside. The EV2 sits higher than you’d expect with a wide front end, giving it a bigger presence on the road, similar to the three-row EV9.
We got a sneak peek at Kia’s affordable EV last month after it was spotted testing on public roads in Korea, but the latest sighting gives us a closer look at the EV2 in its production form. The new video from HealerTV reveals a few details that could look a little different from the concept.
The footage shows what appears to be different daytime running lights (DRLs). When Kia unveiled the Concept EV2 in April, it featured a unique split vertical headlight design.
The EV2 spotted driving still has the split design, but both the inner and outer lights appear to be angled more inwards. It’s not a huge difference, but given most of Kia’s new EVs look almost identical to the concepts, this could be something to keep an eye on.
Prices, specs, and more
Despite being an entry-level model, the EV2 is still equipped with advanced technology and features, including vehicle-to-load (V2L) capability, which allows it to power a campsite, home appliances, and other electronics. With OTA updates, it will only get smarter and more advanced over time.
The interior will feature Kia’s new ccNC (connected car Navigation Cockpit), which features dual 12.3″ driver cluster and touchscreen navigation screens in a panoramic display.
Like its other new EV models, it’s also expected to include a 5″ climate control display for nearly 30″ of screen space.
Kia plans to launch the EV2 next year in Europe and “other global regions.” For those in the US, sorry to disappoint, but it’s not expected to make the trip overseas. We do have the EV4, Kia’s first electric sedan, to look forward to.
We will learn prices and final specs closer to launch, but given it will sit below the EV3, it will likely be cheaper than that.
The EV3 starts at £32,995 ($44,800) in the UK and €35,990 ($41,600) in Europe. Kia’s CEO, Ho-Sung Song, told Autocar in 2023 that the company aims to launch the EV2 at around £25,000 ($32,000) in the UK. With new battery technology and other advancements, it could be even more affordable when it arrives next year.
Kia isn’t the only automaker gearing up to launch a new entry-level EV. Last week, we got a glimpse of the upcoming Volkswagen ID.2 after it was spotted in public testing.
Should Kia bring the EV2 to the US? Would you buy one for around $30,000 or even slightly less? Drop us a comment below and let us know.
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Environment
This electric pickup is taking Korea by storm, now it’s going global on a ‘full-scale conquest’
It’s not a Kia or Hyundai, but the Musso EV pickup truck is shaking up the Korean Market. After the first models left for Europe, the company’s CEO is already saying it will be a “driving force” as it goes on a global conquest.
Korea has a new EV pickup that’s going global
During an event celebrating the first exports of its new Musso EV and Torres HEV pickup trucks, KG Mobility’s CEO, Kwak Jae-Seon, said the new models “have already received favorable reviews and garnered much attention from reporters and sales agents.”
KG Mobility (KGM) expects them to serve as “a driving force” as it expands exports into new global markets. The first Ro-Ro (Roll-on/Roll-off) hit the seas on June 12 carrying 983 vehicles, 184 Musso EVs, and 799 Torres HEVs.
The vessel is headed for Europe, where the first models will be sold in Germany, Spain, Norway, Hungary, and other markets, starting in August.
Jae-Seon, who personally drove the Musso EV onto the car carrier, said during the event that pickup is now on a “full-scale conquest” as it rolls out globally.
KGM’s EV pickup has already generated quite the buzz in Korea, beating Hyundai and Kia to the first fully electric pickup truck.
After launching the Musso EV pickup in Korea in March, the company announced it had secured over 3,200 orders in two weeks. The Special Edition model sold out in an hour and a half.
KGM promotes the vehicles as “a new alternative to mid-size SUVs” that’s more useful as an everyday ride with more interior space.
Measuring 5,160 mm long, 1,920 mm wide, and 1,740 mm tall, the electric pickup is about the size of a Ford Ranger (5,225 mm long, 1,910 mm wide, and 1,866 mm tall).
The infotainment system looks a lot like new Hyundai and Kia EVs with a dual 12.3″ driver cluster and touchscreen navigation screens in a panoramic display.
It also comes with a Land Rover-like ClearSite Ground View camera, allowing you to see what’s beneath you through several strategically placed cameras.
The electric pickup is powered by an 86.6 kWh LFP battery, providing a range of nearly 250 miles (400 km). With up 200 kW fast charging, it can recharge to 80% in 24 minutes.
KGM’s Musso EV is available in both single (FWD) and dual-motor setups. The FWD version features a 152.2 kW front motor, producing up to 207 horsepower, while the AWD model boasts up to 413 horsepower. It can tow almost 4,000 lbs (1.8 tons) and includes a “trailer sway function” to stabilize the vehicle while towing.
The Musso EV pickup starts at 48 million won, or about $35,000. With incentives, KGM says the purchase price is closer to 39.62 million won ($29,000).
With more monthly exports in May than it has in 10 years, KGM expects the Musso EV pickup to accelerate the momentum.
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