Tesla raises Model Y pricing as it retains used EV value best

Tesla's recent Model Y price cut campaign that it initiated right from the start of the year seems to be abating. After dropping the Model Y prices, first in China, then in Europe and North America, Tesla seems to have rekindled demand enough to be raising them back up in select markets.

In Europe, for instance, where the Model Y underwent its deepest price cut of up to 9% just a few weeks ago, Tesla just bumped the price tag back up by up to 5%. Previously, Tesla China explained that the company's price strategy is based on many inputs and as soon as material and component pricing falls it can cut the tags. Elon Musk also chimed in at one of the quarterly results conferences that Tesla does demand and production cost calculations daily in real time and can react to market conditions with price adjustments as often as it chooses.

In the US, Tesla recently undertook a modest mid-quarter Model Y promo that will run this month only, but now allows incentive stacking, including for tax credits and inventory discounts, that can bring the price of its SUV under $30,000 even. Despite all those price tribulations, anecdotal evidence shows that the world's bestselling car now keeps its value best when it comes to the whole used EV market that is growing leaps and bounds.

The Model 3's price depreciation seems worst in comparison, as not only is the sedan less popular than the SUV, but rental car companies like Hertz and SIXT flooded the market with tens of thousands of used Model 3 units at up to 50% off that now have to work their way through the second-hand market.

With the price of Tesla's top selling SUV now almost on par with that of the Model 3 Highland facelift, the Model Y's better value retention seems destined to continue, more so since its Juniper refresh may not come to the US this year.

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