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Tesla Lifts Model Y Prices on Premium Trims, First Increase in Two Years

The move signals a pivot from steep discounts to restoring profitability.

A Tesla model Y is shown charging at a Tesla dealership in Buena Park, California, U.S., January 28, 2026. REUTERS/Mike Blake/File Photo

Overview

  • Tesla raised the Premium RWD and Premium AWD by $1,000 each, and the Performance by $500, setting new starting prices at $45,990, $49,990 and $57,990.
  • Entry-level Model Y prices stay the same, with the base RWD at $39,990 and the base AWD at $41,990 to keep the lowest-cost options accessible.
  • The change reverses a two‑year run of price cuts that boosted volume but squeezed automotive margins, suggesting Tesla sees firmer demand for higher trims.
  • Rivals continue to press on price, as the Model Y Premium AWD at $49,990 now lists above Hyundai’s Ioniq 5 AWD and Ford’s Mustang Mach‑E Select AWD.
  • For buyers, the increases are under 3% on affected trims and can be offset by federal tax credits and some state incentives if they qualify.