Porsche has announced that it will be dramatically increasing the price of its vehicles, specifically its upcoming EVs.
Price cuts have quickly become a defining feature of the first quarter of this year. Perhaps the best example of this movement has been the Chinese market, where brands have been slashing thousands off the price of new EVs.
However, this also extends to western markets, where Tesla has initiated a downward movement.
Counterintuitively, Porsche now plans to do the exact opposite, increasing prices by 10-15 percent on some upcoming EVs, according to a report from Autocar.
The announcement of the price increase comes from the company’s CTO delivering a message to investors regarding the premium German automaker’s goal of achieving a profit margin of 20% in the coming years. Porsche reported yesterday that it had reached a record 18% profit margin last year, and it now looks to double down on those gains.
“We will see significant price increases in the middle of the year for the new model year. That will help a lot to make sure we make strong group operating margins,” said Lutz Meschke, Porsche’s Chief Finance Officer, in his message to investors. “We set ourselves a very ambitious goal when it comes to group return on sales of 17-19 percent in the mid-term, and that means we have to reach parity between BEV and ICE as soon as possible, otherwise, this forecast wouldn’t work.”
The models primarily affected by the price increase will be upcoming EVs, which will be 10-15 percent more expensive than ICE variants. This includes the Porsche Macan EV, 718 EV, Cayenne EV, and the upcoming unnamed larger electric SUV sibling of the Cayenne. Porsche’s CFO didn’t mention if these price increases will also affect the Porsche Taycan, but if the brand hopes to continue to grow profit margins, it may have no other choice.
Porsche does not believe that demand will be affected by the substantial price increase, thanks in large part to the marketing success the brand has had.
Besides the recent trend of price cuts, Porsche is technically following the long-lasting trend within the auto industry of increasing vehicle prices yearly, even if they plan to do so far more dramatically.
This price hike coincides with a peak in R&D investment from the company, primarily into EV technology and sustainable fuel production, which Porsche has become the champion of.
Strangely, the new price hike comes as the brand hopes to achieve 50 percent EV sales by 2025, which could be particularly difficult if brands like Tesla continue to cut prices and offer compelling vehicles. Furthermore, Porsche is going counter to its traditional rivals, including BMW and Mercedes, who have introduced price cuts in China and have been forced to implement similar (if less aggressive) price adjustments in western markets.
Porsche has likely gained significant confidence following its 2022 earnings report, in which it reported record earnings and continued growth of vehicle sales, up 2.6 percent compared to the previous year.
The reaction from Porsche investors has been mixed. While still elevated from its IPO price late last year, Porsche stock has fallen slightly following the announcements over the past few days. However, as Porsche has not yet instituted its price hikes, it is impossible to predict how the car market or investors will react in the long run, especially as the brand continues to grow in popularity, particularly within the enthusiast market.
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
News
How Tesla’s Standard models will help deliveries despite price disappointment
“What a giant miss,” one person said.
“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.
“So…where are the affordable models?” another reply read.

When Tesla unveiled its Standard versions of the Model 3 and Model Y this week, reactions were mixed. Many liked the addition of two new models, but they were also concerned about the price.
“What a giant miss,” one person said.
“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.
“So…where are the affordable models?” another reply read.
Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings
There’s no arguing it: $36,990 and $39,990 for the Model 3 Standard and Model Y Standard were not what consumers had in mind.
But, despite Tesla getting its new offerings to a price that is not necessarily as low as many expected, the two cars still have a chance to assist with quarterly deliveries.
Here’s how:
First-time Tesla buyers will lean toward Standard models
Tesla owners have become accustomed to expecting all the bells and whistles in their cars. Heated seats, ventilated seats, acoustic glass, vegan leather, industry-leading performance, world-class range, and a glass roof are all expected by current or past owners.
But what about new owners?
New owners do not have these high expectations, so to many of those who have not sat in a Tesla or driven one before, they are going to be blown away by the minimalistic looks, capabilities, and features of the Standard models.
The Premium models will feel like the high-end offerings that other automakers also have for sale, except they’ll only be a few thousand dollars more than Tesla’s base models. With other companies, the price for these higher-end trims is $10,000 or more.
The more affordable Standard models will be there, but if buyers want the extra features, they’ll likely be able to justify the extra few thousand dollars.
Tesla’s Standard Models fall under the U.S. Average Transaction Price
Kelley Blue Book releases a new report each month showing the average transaction price (ATP) of all vehicles sold in the U.S. for that month.
The latest report, released on September 10 for the month of August, revealed an ATP of $49,077. This was up 0.5% from July ($48,841) and higher year over year by 2.6%.
Technically, Tesla’s new Standard models fall well under that ATP, meaning they technically do qualify as “affordable.” However, realistically speaking, affordable does not mean “under the national average.”
It means accessible for low-income families, single-parent households, and other groups. This would likely be under $30,000.
Déjà Vu with the Cybertruck Rear-Wheel-Drive
When Tesla offered the Cybertruck RWD, it stripped out many of the best features of the Cybertruck, such as the adjustable air suspension, powered tonneau cover, and interior materials, just to name a few.
It was $10,000 less than the Cybertruck AWD, but many people essentially viewed it as a way to push consumers toward the more expensive variants, since the discount was a better value than missing out on features.
Tesla released the Cybertruck RWD to make the AWD look like a deal
Something similar could happen with the Standard models. With it only being a few thousand dollars less than the Premium Model 3 and Model Y, some consumers will see it as a better option to go with the more expensive trim levels.
Even if they don’t, many car buyers will see it as a deal to grab the Standard versions.
News
Tesla bull sees a new path to 600,000 deliveries per quarter
“We believe the launch of a lower cost model represents the first step to getting back to a ~500k quarterly delivery run-rate, which will be important to stimulate demand for its fleet with the EV tax credit expiring at the end of September.”

Tesla (NASDAQ: TSLA) bull Dan Ives of Wedbush Securities published a new note to investors on Thursday evening, which seemed to open up the possibility of the automaker returning to a growth rate in terms of deliveries.
After nearly two years of leveling off with deliveries, which was expected, Tesla is now slated to potentially return to growth, Ives says, as it has introduced new, more affordable models. It launched its Standard offerings for the Model 3 and Model Y this week, a strategy to bring cheaper cars to customers amid the loss of the $7,500 tax credit.
🚨 Wedbush’s Dan Ives put up a new Tesla $TSLA note:
“The AI valuation will start to get unlocked in the Tesla story and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s…
— TESLARATI (@Teslarati) October 10, 2025
In his note to investors, Ives said:
“We believe the launch of a lower cost model represents the first step to getting back to a ~500k quarterly delivery run-rate, which will be important to stimulate demand for its fleet with the EV tax credit expiring at the end of September.”
Although these cars come in only slightly under $40,000, there is some belief that they will do two things: attract car buyers looking for an under-$40k EV with Tesla’s technology and infrastructure, or push those on the fence to the now-Premium models, which are simply the Long Range Rear-Wheel-Drive and Long Range All-Wheel-Drive.
Ives said in the note that Tesla’s plans for a $25,000 car are “on hold,” but it seems as if that vehicle will be the Cybercab, which the company unveiled a year ago today.
That project seems to be moving forward as well, based on what we saw at both Fremont and Gigafactory Texas yesterday. At Fremont, the Cybercab was spotted on the Test Track, while crash-tested units were spotted at the factory in Austin.
After the Standard models were rolled out and the Cybercab or another $25,000 unit arrives, Ives believes Tesla could actually get closer to 600,000 deliveries per quarter, he said on CNBC this morning:
BREAKING: DAN IVES SAYS — $TSLA WILL DELIVER ABOVE 600K CARS PER QUARTER 👀
He says Tesla stock is going to $600+ ! pic.twitter.com/fWLfMnH1XH
— TheSonOfWalkley (@TheSonOfWalkley) October 10, 2025
Moving forward, Tesla has much more going for it than its potential growth in quarterly deliveries. Ives recognizes that a majority of what Tesla’s value will come from in the future: AI and autonomy.
Ives said:
“The AI valuation will start to get unlocked in the Tesla story and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co. We believe Tesla could reach a $2 trillion market cap early 2026 in a bull case scenario and $3 trillion by the end of 2026 as full scale volume production begins of the autonomous and robotics roadmap.”
Ives and Wedbush maintained their $600 price target and ‘Outperform’ rating on Tesla stock.
News
The Tesla Model Y Standard is actually a great deal in Europe
A €10,000 delta could very well prove to be a meaningful difference for numerous consumers.

It’s no secret that the Model Y Standard proved polarizing to numerous Tesla watchers in the United States. At just a few thousand dollars less than the Model Y Premium, the entry-level variant seemed like a subpar deal considering all the features that are missing from the vehicle.
In Europe, however, the story might be different, and the Model Y Standard might actually end up being a pretty good deal for numerous car shoppers.
Model Y Standard
Perhaps the biggest complaint against the Model Y Standard in the United States was its price. Listed at $39,990, it was only $5,000 less than the Model Y Premium Rear Wheel Drive (RWD), which starts at $44,990 before options. Considering the list of features and functions that are absent in the Model Y Standard, a good number of Tesla community members noted that the vehicle should have been priced lower, perhaps around $34,990, for it to truly be a good deal.
Otherwise, the entry-level Model Y could end up following in the footsteps of the Cybertruck Rear Wheel Drive, which was priced just below $70,000, but was missing a long list of features that were included on the Cybertruck AWD. The Cybertruck RWD has since been discontinued, likely because of low orders.
Different story in Europe
While the Model Y Standard may not make much sense in the United States, its pricing actually makes it a very good deal in Europe. A look at the order page for the Model Y in The Netherlands, for example, shows that the Model Y Standard is priced at €39,990 before options, €10,000 less than the Model Y Premium Rear Wheel Drive, which is priced at €50,990 before options.
As noted by Tesla watcher @KamermanMenno on social media platform X, a €10,000 delta is a meaningful difference for numerous consumers. Given the significant price difference, the Model Y Standard could become the ideal entry-level vehicle for drivers looking to join the Tesla ecosystem at the lowest possible cost. The fact that the Model Y Standard is a crossover SUV bodes well for the vehicle, given the segment’s popularity as well.
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