Tesla increases Model Y AWD price by $250 in the US, removes white interior option

Tesla has again tweaked the price of the Model Y in the US, increasing it for the third time since April. According to an update to the Design Studio on Tuesday night, the increase affects only the entry-level Model Y AWD, which now starts at $47,740 with standard equipment, a small $250 increase from before. Importantly, the increase does not disqualify the electric SUV from receiving the $7,500 tax credit.

Along with the price increase however, Tesla also removed an option for the Model Y AWD in the US, matching a similar move made in Canada last month.

With the different Model Y variants now available in Canada and the US, it is worth clarifying the entry-level Model Y AWD is the one that comes from Giga Texas and is equipped with Tesla’s 4680 battery cells. This is different than the entry-level Model Y in Canada, which is RWD, built at Giga Shanghai, and includes lithium iron phosphate (LFP) battery cells. Despite these differences, the Model Y AWD in the US can now only be ordered with a black interior, just like the Model Y RWD in Canada.

Tesla has not clarified why they switched to only having a black interior on the entry-level Model Y in Canada, and similarly the automaker has not explained why they have now made the same change to the entry-level Model Y in the US. With the option adding an extra $1,000 USD to the purchase price, it could be that the data Tesla has shows the majority of Model Y AWD buyers are sticking with the standard black interior, and we all know how Tesla isn’t afraid to remove features or options when the data shows very few people are taking advantage of it.

While that may be the reason, some are speculating it could be a push from Tesla to get buyers to switch to higher trim levels of the electric SUV. Others are suggesting it could be a supply chain issue, however that appears to be unlikely as the white interior option is still available on the other variants of the Model Y, and all variants of the Model 3.

It will be interesting to see if this change is applied to all new orders moving forward, of if it will be retroactive. Unfortunately it was retroactive for those with Model Y Long Range orders in Canada, with Tesla cancelling customer orders last week, or giving them the option to switch to a Chinese built Model Y with a black interior and lower range.

Are you buying a Tesla? If we helped, click here to get 6 months of free Supercharging and a three month trial of Full Self-Driving (FSD).
Previous Article

Morgan Stanley analyst believes Tesla should establish its own financial service subsidiary

Next Article

Volkswagen EV Battery Plant Deal in Canada Estimated to Cost Up to $16.3 Billion, Parliamentary Budget Officer Reports

You might be interested in …