Tesla announced on Friday its decision to raise the prices of all Model Y vehicles in the United States by $1,000 starting April 1st. This follows a prior increase on March 1st, where the company hiked prices for its Model Y rear-wheel drive and long-range variants by $1,000 each, setting them at $43,990 and $48,990, respectively. Tesla attributed these price adjustments to the escalating costs of nickel, a crucial component in the battery cells powering its electric vehicles.
Tesla specializes in high-performance batteries and has been trying to reduce production and shipping costs. In the last few months, it has slashed prices for its most affordable Model 3 sedan and SUV models as demand softened for fully electric cars.
On the other hand, car rental firm Hertz Global Holdings (HETZ.N) recently reported that customers opt for hybrid vehicles instead of all-electric models due to higher ownership costs and a lack of federal tax credits for EVs. This has made some of Tesla’s investors skeptical of its ability to continue growing its fleet and profits.
Cathie Wood, an EV investor and longtime Tesla bull, told CNBC that the recent price cuts had helped to boost sales. She added that she continues to buy Tesla stock and sees no reason to change that position. Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, has taken a more cautious stance. He has told clients to be careful with the company’s volatile shares and is buying fewer Tesla vehicles than he used to.
Despite the recent price cuts, there is still a lot of excitement over the upcoming refreshed Version 3.0 of the vehicle, which is expected to debut at the end of this month. This updated version will offer more storage, a more extended battery range, and a new interior.
As a sign that Tesla is eager to boost sales for its latest vehicles, it recently posted a Certified Pre-Owned page on its website. The page lets you browse all the CPO Teslas available in the United States. If you see a model you want, you can arrange to ship it from the nearest CPO location.
Another exciting addition to the Tesla website is a page dedicated to energy efforts. The company’s energy page is filled with large images of solar-powered homes, emphasizing the environmental benefits of owning a Tesla. This appeals to Tesla’s core customer base of progressive tech lovers who value sustainability. The pages are conveniently located on the homepage, so users will likely naturally click them. This kind of interactive page could be a way for the company to drive up Model Y sales, which have been slow in 2024.