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Tesla holds lowest vehicle price increase rate as new car prices hit all-time high

Credit: Tesla

Tesla has the lowest vehicle price increase rate from September 2020 to September 2021 of all major automotive manufacturers, a study from Kelley Blue Book shows. The average price of a new car has hit an all-time high in the United States with the average cost increasing by 3.7% from August 2021 to September 2021. The average price of a new car now sits at $45,031.

KBB data shows the rate of pricing increases from major automakers globally. While every car company in the world was forced to increase prices due to semiconductor shortages and supply chain bottlenecks, the variance of each rate increase was dependent on the automaker. However, some car companies hiked prices significantly more than others. The same cannot be said for Tesla, which increased prices the least of any automaker, and by a considerable margin.

Data from the KBB study shows Tesla’s prices increased by only 1.5% from September 2020 to September 2021. The industry average was 12.1%, mainly driven up by Daimler, which saw 25.8% price increases in the same time period. Other automakers with over 20% price increase rates included Mitsubishi (23.8%), and General Motors (21.6%). The two car companies with the smallest increases were Tesla and Subaru, which only increased prices Year-over-Year by 6.3%.

Credit: Kelley Blue Book

Tesla’s only sub-$40,000 vehicle is actually the Tesla Cybertruck’s Single Motor variant, which is not scheduled to be built for several years as the company is prioritizing the more expensive, but more capable Dual and Tri-Motor configurations. The Cybertruck will be built at Tesla’s Gigafactory Texas in Austin.

The supply chain shortages were not the only thing to blame for the hike in average new car prices, according to KBB’s report. In fact, buyer preferences also helped the average cost of a vehicle go up considerably. KBB said, “the vehicle mix shifted in September away from lower-priced sedans, compacts and entry-level segments toward more-expensive pickups, SUVs and the luxury market.”

Cox Automotive analyst Kayla Reynolds said that September saw a drastic jump in midsize SUV sales compared to August. Full-sized pickup trucks also saw a spike in sales, as well.  “Sales of lower-priced compact and midsize cars, which had been commanding more share during the summer, faded in September. As long as new-vehicle inventory remains tight, we believe prices will remain elevated,” Reynolds added.

Tesla has increased prices of its vehicles on several occasions this year due to demand and parts shortages. However, the most affordable vehicle from the company, the Model 3 SR+, still remains under the national average new car price at $41,990.

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Tesla holds lowest vehicle price increase rate as new car prices hit all-time high
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