EV giant Tesla Inc. (NASDAQ:TSLA) started cutting prices in the U.S. at the onset of 2023 and in China in the second half of 2022 in a bid to undercut rivals and increase sales. However, the company has since also hiked prices and launched newer variants with higher price points.

How do vehicle prices now fare as compared to the start of 2022?

The Model Y SUV is Tesla’s best-selling vehicle. In early 2023, the Long-range variant was priced at around $66,000.

After price cuts through 2023 and 2024, the Long Range All-Wheel drive variant of Model Y is now priced at $47,990. However, Tesla has also launched a refreshed version of the vehicle in the U.S., with a starting price of $59,990.

In China, Tesla’s second-largest market, the Long Range Model Y was priced at 309,900 yuan at the onset of Jan 2023. Two years later, the company launched a refreshed version of the vehicle priced at 303,500 yuan for the long-range variant after the price of the variant fell as low as 299,900 yuan.

Why does it matter?

Tesla reported global deliveries of 1.79 million vehicles in 2024, down from full-year deliveries of 1.81 million in 2023, marking the first decline in over a decade.

Musk has previously predicted a delivery growth of 20-30% in 2025, thanks to the introduction of newer models, including more affordable ones this year.

As for existing vehicles, the company is now closing back in on the company’s earlier price points prior to price cuts, possibly because the price cuts weighed heavily on the company’s margins.

Tesla is slated to report its full-year 2024 financial results on Wednesday at 5:30 p.m. Eastern Time.

Photo courtesy: Tesla