EV giant Tesla Inc TSLA has raised the prices of its Model Y AWD in the United States by $250.
What Happened: Tesla’s website now shows the vehicle priced at $47,740 without potential incentives.
The prices of all other Tesla models, including Model Y Long Range and Performance, remain the same.
All Model Y vehicles are eligible for a $7,500 federal tax credit, making it start at $40,240 after tax credit.
Why It Matters: On April 19, a day after the Internal Revenue Service released the list of vehicles eligible for the electric vehicle tax credit, Tesla cut the price on its Model Y vehicles by 6-9.1%. Model Y AWD saw its price slashed from $49,990 to $46,990.
Since then, this is the third time that Tesla has hiked prices on Model Y AWD- all by $250. However, despite the price hikes, the vehicle continues to be cheaper than prior to the price cut in April.
Tesla started cutting prices on its vehicles in January. It improved first-quarter deliveries for the EV company and put pressure on competitors to lower their costs in response to the competition.
Tesla delivered 422,875 vehicles in total in the first quarter, 4.34% higher than its fourth-quarter tally of 405,278 units.
Earlier this week, Morgan Stanley analyst Adam Jonas said that he questions how much cash flow Tesla would be generating if the company wasn’t benefitting from significant government incentives and price cuts.
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