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Key Takeaways
- Tesla said it is raising the price of its most popular EV, the Model Y, by $1,000 on April 1.
- The car maker had already boosted Model Y prices by $1,000 this month.
- The hikes followed a price reduction earlier this year, which CEO Elon Musk explained was based on lower sales in the winter.
- Tesla shares were up more than 6% Monday morning but are still down about 30% in 2024.
Tesla (TSLA) shares advanced Monday after the electric vehicle (EV) maker announced that it was raising the price of its most popular model, the Model Y.
The company posted on its website that the cost of the mid-size SUV would increase $1,000 on April 1.
Tesla already boosted Model Y prices by $1,000 on March 1 on its real-wheel and long-range versions, putting them at their current base price of $43,990 and $48,990, respectively. Both qualify for the $7,500 EV federal tax credit.
The March and April hikes came after a January price reduction in China and Europe, which was followed by one in the U.S. in February. After that cut, CEO Elon Musk wrote on X, “Since most people don’t love to buy cars in the middle of winter, Tesla is offering a $1000 incentive to do so. This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal.”
Tesla previously announced that buyers could get 5,000 hours of free Supercharging if they take delivery by the end of the month. In addition, those who already own a Model Y and trade it in for another would get 10,000 free Supercharging hours.
Tesla has struggled as EV demand slumps and competition increases. Tesla shares were up 6.2% to $173.67 at about 11:30 a.m. ET Monday but have lost about 30% of their value this year.