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Tesla Raises Prices on Cheapest Model 3 Sedan and Others

TheStreet logo TheStreet 5/7/2021 TheStreet Staff
a group of people on a stage: Tesla Raises Prices on Cheapest Model 3 Sedan and Others © TheStreet Tesla Raises Prices on Cheapest Model 3 Sedan and Others

Electric-vehicle maker Tesla increased prices of its Model Y sport utility vehicle and Model 3 sedan amid the global semiconductor shortage, according to media reports.

Shares of the Palo Alto, Calif., company at last check were up 2.1% to $677.39.

The latest round of price rises adds $500 to the cost of the Model 3 Standard Range Plus, Model 3 Long Range Dual Motor AWD, and Model Y Long Range Dual Motor AWD.

The cheapest Tesla Model 3 now costs $39,500, up from $37,000 in February, according to the car maker's website.

The cost of the Model 3 Standard Range Plus is now 1.6% higher at $39,490 in the U.S.

The Model 3 Long Range AWD is now priced 1% higher at $48,490.

The price of the Model Y Long Range AWD has increased by nearly 1% to $51.490.

Video: Why this analyst increased Tesla's price target to $900 (CNBC)


In February, Tesla had trimmed prices for its cheapest Model 3 and Model Y while raising prices for the performance versions.

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Separately, Tesla told a California regulator it may not achieve full self-driving technology by year-end, Reuters reported, citing a memo written by the California Department of Motor Vehicles.

Tesla Chief Executive Elon Musk had said in January that he was "highly confident the car will be able to drive itself with reliability in excess of human this year."

Tesla since October has also rolled out what it describes as a beta version of its full self-driving program to a limited number of employees and customers, Reuters reported. Musk also has touted the capability on Twitter.

"Elon's tweet does not match engineering reality per CJ. Tesla is at Level 2 currently," the California DMV said in a memo about its conference call in March with Tesla representatives, including autopilot engineer CJ Moore.

Level 2 technology means the car can steer itself and accelerate but the driver still must be ready to take the wheel.

The memo was released by legal transparency group PlainSite, which obtained it under the Freedom of Information Act.

Musk, meanwhile, will be hosting "Saturday Night Live" this weekend.

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This article was originally published by TheStreet.

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