Tesla has hiked the prices of all its electric vehicles sold in the U.S. In China, prices were increased on one model 3 and one Model Y vehicle. The company did not give a reason for the price rise. However, Elon Musk, CEO of the electric vehicle manufacturer, spoke of inflationary pressures, in a tweet posted before the price hike.
On March 14, Musk tweeted that both Tesla and SpaceX were seeing “significant recent inflation pressure” in the procurement of raw materials and in logistics.
Last week, on March 9, Tesla had increased the price of each of its Model 3 Long Range and Model Y SUVs by 1,000 dollars in the U.S. and a few Made in China Model 3 and Model Y by roughly $1582, on March 10. The new prices come in effect on new orders that are placed after the announcement of the the hike.
Nickel, an element that is used to make electric vehicle batteries has seen a hike in price as a result of the the sanctions put on Russia due its invasion of Ukraine. It is an expensive metal and the suspension of a key supplier has lead to a huge price increase. There is also a price rise in other metals including steel and palladium.
The new starting rates of vehicles according to Tesla are as follows:
Model 3 Rear-Wheel Drive $46,990; earlier price $44,990
Model 3 Long Range $54,490; earlier price $51,990
Model 3 Performance $61,990, earlier price $58,990
Model Y Long Range $62,990; earlier price 59,990
Model Y Performance $67,990; earlier price 64,990
Model S Dual Motor $99,990; earlier price $94,990
Model S Tri Motor $135,990; earlier price $129,990
Model X Dual Motor $114,990; earlier price 104,990
Model X Tri Motor 138,990; earlier price 126,490.
Although Tesla has raised its prices and doesn’t really market it cars, its care are still very much in demand. It has been a pioneer in the Electric Vehicle (EV) industry and it is reaping those benefits despite a delay in delivery due logistics and raw material supply. The recent rise in gas prices is also fueling an increase in the demand for EVs and the supply is still slower than the demand.
