Tesla can't stop changing the prices of its most popular EVs

Monday, 8 May 2023

A row of Model 3s and Model Ss lined up in front of Tesla’s Fremont GigaFactory.

It is only the fifth month of 2023, and already Tesla has rolled out four price adjustments in New Zealand for its two best-selling nameplates – the Model 3 and Model Y.

The American electric vehicle specialist brand has confirmed another price change for the pair of models, following its earlier adjustments in January, February, and April.

Car rental company Go Rentals received a government subsidy to purchase a fleet of electric vehicles. It now has 10 Tesla Model 3 for hire. (First published in May 2021).

For the first time this year, the price of Tesla’s Model 3 and Model Y have actually increased. This is a change of pace that echoes price tweaks Tesla has recently implemented in other markets overseas.

The entry level Model 3 and Model 3 Performance are now priced from $66,400 and $96,400, respectively. The base Model Y and Model Y Performance, meanwhile, are now priced from $71,900 and $101,400.

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For reference, the two Model 3 variants were priced at $65,900 and $95,900 prior to the change. The Model Y’s two grades had been priced at $70,900 and $100,900.

The price tweaks were confirmed on Tesla’s website in the same week as the government confirmed it would be lowering the Clean Car Discount rebate for new electric vehicles from $8,625 to $7,015.

This change to the rebate, coupled with Tesla’s price increases, means the entry-level Model 3 and Model Y are now over $2,000 more expensive than there were this time last week.

The Model Y is currently neck-and-neck with the BYD Atto 3 for the crown for New Zealand’s most popular new EV for 2023. Both models are undeniably popular, and both marques have battled issues with inconsistent supply.

Tesla announced price rises in markets like China, Canada, Japan, and the United States in late April.

It is unclear why the price increases were drafted, although they appear to go against comments Tesla CEO Elon Musk made in April.

Speaking to investors in an earnings call, Musk said the company’s plan was to focus on higher sale volumes over higher profit margins, adding that “over time will be able to generate significant profit through autonomy.”