Tesla hikes prices globally after several price cuts in Q1

After lowering the cost of its best-selling models several times since the beginning of the year, Tesla revealed that it had increased its prices by up to $290 in Canada, China, Japan, and the U.S. 

Even though prices across its lineup are significantly lower than in January following a series of discounts, this was Tesla’s first price increase on its two bestselling models in several locations.

CEO Elon Musk has confirmed the company is willing to sacrifice margins, but it’s also looking to move prices back higher to match deliveries with output. 

According to Tesla’s website, the beginning price for the base Model Y and Model 3 in the U.S. has increased by $250 as of May 1, 2023. The websites revealed that prices changed by almost the same amount in China, its second-largest market, as well as in Canada and Japan.

It was the first time since January that Tesla raised the cost of the Model 3, its entry-level vehicle, in the U.S.

The base, rear-wheel-drive Model 3 is still around 14% less expensive in the United States than at the beginning of the year. The long-range Model Y is still approximately 24% cheaper in Tesla’s biggest market.

Tesla increased the cost of its performance Model 3 and Model Y models in Canada by C$300 or $222 USD. Prices for the base Model 3 increased by $269, or 37,000 yen, in Japan. 

Additionally, Tesla’s website revealed it increased the price for versions in China by 2,000 yuan or $289 USD.