Tesla Model Y now costs almost the average family income in the United States
Electric carmaker Tesla raised the price of its cars on Thursday. This week’s price rise comes just three months after a major price increase and signals the ripple effects felt by the auto industry amid global supply chain shortages and the rate of inflation the highest for more than 40 years.
While no stranger to fluctuating prices, Tesla’s recent increases have seen its vehicles soar as much as 15% for the year, making 2022 one of the most drastic overall price hikes in the industry. range of the automaker, period.
June’s increase begins with its long-range Model 3, which receives a modest $2,500 increase that takes its outright cost from $54,490 to $57,990. Standard range and Model 3 performance versions are unaffected. Tesla’s popular Model Y crossover also received a boost, with a $3,000 increase in the Long Range (from $62,990 to $65,990) and the $2,000 performance version (from $67,990 to 69,990). $). According to US Census data, the average household income in the United States for 2020 was $67,521.
Tesla also increased the prices of its two premium vehicles, the Model S and X. The price of the Model S increased by $5,000, bringing the sedan to $104,990. Likewise, the Model X has also increased by $6,000, bringing the SUV’s spot price to $120,990. The Model S and Model X “Plaid” versions remain unchanged at $135,990 and $138,990, respectively.
This is the fourth round of price increases for Tesla so far in 2022, representing an average increase of 9.1% per model so far this year. The vehicles with the highest increases so far are the Model X Dual-Motor, which grew 15.2% for the year, the Model 3 Long-Range (13.7%) and the Model S Dual Motor (10.5%). The Model 3 Standard range remains the vehicle with the lowest overall price increase of just 4.4%.
While Tesla may be the most notable name raising the price of its vehicles, it’s certainly not the only one feeling the bottom line pressure from rising manufacturing costs. Ford CFO John Lawler recently revealed that Blue Oval’s flagship crossover, the Mustang Mach-E, now costs $25,000 more to manufacture due to rising costs in the industry.
Americans are also feeling the effects of the high cost of vehicles. Data from the Kelly Blue Book revealed that May 2022 was the second highest month on record for average new vehicle prices. As a result, consumers are also paying more than ever for their monthly car bills, with the average monthly payment being $712. Lawler said Ford’s credit department has also seen a recent increase in late payments, indicating that automakers could face a difficult period in the coming months, especially since a clear trend towards Rising production costs show no signs of slowing down.
Have a tip or question for the author? Contact them directly: email@example.com