- Tesla increased the price of some Model Y versions for the first time in two years.
- The entry-level trims are not affected by the recent bump.
- The change makes the Hyundai Ioniq 5 and Ford Mustang Mach-E more appealing.
Tesla has increased the prices for the mid- and top-spec Model Y versions in the United States after two years. This past weekend, the Model Y Premium Rear-Wheel Drive and Model Y Premium All-Wheel Drive got $1,000 more expensive, while the sporty Model Y Performance’s price was bumped by $500.
Interestingly, the entry-level Model Y versions, which were previously known as the “Standard,” were unaffected by the price change. Now, the cheapest Tesla crossover starts from $41,630, while the mid-spec Model Y Premium RWD goes for $47,630, and the Model Y Performance costs $59,630.
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Source: Mack Hogan/InsideEVs
The automaker has not given any reason for the price increase, but the move could convince buyers to look elsewhere, with automakers like Hyundai and Ford slashing prices on their EVs instead of raising them.
The 2026 Hyundai Ioniq 5, for instance, already had a lower starting price than the Model Y, but the lower cost also came with a few caveats, like a shorter range and less power. The base 2026 Ioniq 5 SE Standard Range starts from $36,600 and is rated for 245 miles on a full charge, while the Model Y RWD has an EPA-estimated 321 miles of range but starts from $41,630. Then, there are the manufacturer discounts, which can go as high as $8,750.
Now, though, even the more expensive Ioniq 5 Limited beats the Model Y’s comparable Premium versions on price, though the driving range is still on Tesla’s side. The same goes for the 2026 Ford Mustang Mach-E. The base Select model offers 260 miles of range for a $40,535 starting price, while the upper-spec Mustang Mach-E Premium with all-wheel drive and 300 miles of range starts from $51,580 without factoring in Ford’s incentives that can slash up to $3,000 off the selling price.
It’s an interesting move from Tesla, and it was probably needed. The company lowered the Model Y’s price several times in the past few years, with the latest cut happening in 2024, when the crossover was discounted by up to $2,000. Now, though, as rivals heavily incentivize their EVs, Tesla is going in the opposite direction.