TLDR
- Tesla raised prices on higher-end Model Y trims by $500–$1,000, with the Premium AWD now starting at ~$50,000
- The hike comes as U.S. EV sales fell 27% in Q1, while Tesla’s automotive gross margin rose to 21% from 14% a year ago
- The Model Y still dominated U.S. EV sales in Q1, with 78,591 units sold — 36% of all EVs sold in America
- Tesla stock trades at $422.24, which GuruFocus flags as 47.3% overvalued against its GF Value of $286.63
- Insiders sold approximately $32.2 million in TSLA stock over the last three months
Tesla quietly raised prices on several Model Y trims in the U.S. on May 18, 2026. The Premium All-Wheel Drive model now costs around $50,000 — up $1,000 — while the Performance AWD went up $500. The standard RWD and AWD versions hold at roughly $40,000 and $42,000.
🚨 $TSLA – Tesla has raised prices for its Model Y lineup in the U.S.
🔹 Model Y Premium AWD: +$1,000 → now $49,990
🔹 Model Y Premium RWD: +$1,000 → now $45,990
🔹 Model Y Performance AWD: +$500 → now $57,990
The move comes as Tesla appears to be shifting away from… pic.twitter.com/IaAizwfaRV— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) May 16, 2026
The Model 3 lineup appears unchanged.
Tesla has not raised Model Y prices in the U.S. since 2024. The company did not respond to requests for comment on the increases.
The timing is a little counterintuitive. U.S. EV sales dropped 27% in Q1 compared to the same period last year. EVs now make up just 5%–6% of new car sales, down from nearly 10% in Q3 2025 — before the $7,500 federal purchase tax credit expired last September. The average EV price has since fallen from around $58,000 to $55,000.
Despite that backdrop, Tesla may be raising prices because demand for higher-end Model Y trims is holding up — or it’s pushing for better margins.
Margins Are Recovering
Tesla’s automotive gross margin hit 21% in Q1, excluding regulatory credit sales. That’s up from 14% in Q1 2025, though still well below the 32% peak from Q1 2022.
For the full year, Wall Street expects Tesla to sell around 1.7 million EVs globally — roughly in line with 2025. Tesla peaked at 1.8 million in 2023.
The Model Y remains the top-selling EV in the U.S. by a wide margin. Tesla moved 78,591 units in Q1, up 23% year-over-year, capturing 36% of all U.S. EV sales.
Tesla’s Focus Is Shifting
Tesla recently stopped production of the Model S and X to convert its Fremont, California, factory to robot manufacturing. The robo-taxi service launched in Austin, Texas, in June, and is expanding.
Analysts and investors have largely been focused on that side of the business — not EV pricing. AI-related developments have been the bigger driver of the stock recently.
TSLA currently trades at $422.24. GuruFocus values the stock at $286.63 using its GF Value model — implying the stock is 47.3% overvalued. The P/E ratio stands at 387x, compared to its five-year median of 107x.
The GF Score sits at 82/100. Growth ranks 9/10 and financial strength at 8/10. Valuation ranks 3/10.
Insiders have sold roughly $32.2 million in TSLA stock over the past three months.
Through Friday’s close, Tesla stock was down 6% year-to-date and up 21% over the past 12 months.
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