Tesla could increase Model Y price in the US due to upward demand

Tesla has indicated that the new Model Y could see a price increase in the US, due to the recent trend in its demand, but the plan is still under consideration.

This new information comes as the new Model Y inventory is witnessing a sharp decline across the U.S., and has also sold out in some areas. This could be an effect of the Federal EV tax credit, which will expire in September. This matches the trend supported by IRS data showing a 20 percent increase in EV sales in July 2025, according to Cox Automotive.

It also follows the recent launch of Model Y L, the new six-seater version, exclusively available in China but sold out as its waiting time has reached September.

Reacting to the Model Y inventory sales, Raj Jegannathan, a Tesla executive, said the company needs to increase production to meet the demand, which may lead to a price increase for US customers.

However, Raj said that the company is “trying hard not to, will see” about the price hike.

Tesla Model Y Price Increase US

The Model Y currently has two models listed on the configurator – Long Range Rear Wheel Drive (RWD) and Long Range All Wheel Drive (AWD). These are priced $44,990 and $48,990, respectively, but both of these are also eligible for the Federal tax credit. Tesla is also running some exclusive offers for US customers, bringing additional benefits on purchases.