Tesla is raising prices across its lineup
Tesla operates differently from traditional automakers in many ways, including pricing.
Most automakers update their cars every year and release them in model years. They set prices for each model year and rarely adjust them during the production run (although some have made price changes midway through 2022 due to inflation and supply chain challenges).
Tesla does not recognize model years. The company makes changes to its cars at irregular intervals and has never completely redesigned a car. She adjusts the prices frequently. Most of its models saw 10 or more price increases in 2021 – an unprecedented pace.
The company’s flagship Model S sedan started 2021 with a price tag of $69,420 and ended the year with a window decal of $94,990.
The same pattern could hold true in 2022 as well. This is at least the third price increase this year for most of the Tesla lineup.
Some trim levels escaped the changes. Here they are today.
Tesla also charges a $1,200 destination and documentation fee for all of its cars.
The repeated price hikes could make sense given inflation, ongoing global microchip shortages, and other supply chain crises rocking the auto industry.
But they are also risky. Tesla faces more competition than ever, with most established automakers launching new electric cars in 2022.
But Tesla EVs no longer qualify for the federal government’s $7,500 EV tax credit. Competitors like the Hyundai Ioniq 5 and the Volkswagen ID.4 – current and former World Car of the Year winners – have lower prices than any Tesla product and also qualify for the federal rebate.