This latest adjustment increases the price of all non-performance variants of the electric vehicles by $500.
Model 3 Prices
- Standard Range Plus – $39,490 to $39,990 (+$500)
- Long Range – $48,490 to $48,990 (+$500)
- Performance – $56,990 (no change)
Model Y Prices
- Long Range – $51,490 to $51,990 (+$500)
- Performance – $60,990 (no change)
After a $500 decrease in February, this is now the fifth straight price increase from Tesla. The cheapest variant, the Standard Range Plus (SR+) Model 3 is now $2,990 more expensive compared its lowest price of $37,000 in February.
The likely reason behind the increase is demand. It was reported earlier this month that Tesla had already sold out their production capacity for the second quarter, with two months still left to go. This is backed up by statements made by CEO Elon Musk during the Q1 2021 earnings call where he said demand was the strongest it has ever been.
“We have seen a real shift in customer perception of electric vehicles and our demand is the best we have ever seen. So this is – if you talk about, we are used to seeing a reduction in demand in the first quarter and we saw an increase in demand that exceeded the normal seasonal reduction in demand in Q1,” Musk said.
Since both the Model 3 and Model Y are still considerably more expensive when converting from US to Canadian dollars, there is a large buffer and prices were unaffected in Canada.