This week, Tesla raised the prices on all of their cars currently available in the U.S., while implementing similar hikes on the Model 3 and Model Y in China. These latest hikes are the second increase in prices within the past week.
Officially, Tesla did not give a reason for the price increases. However, on Twitter, CEO Elon Musk openly pondered what impact rising inflation may have on businesses such as his, stating that both Tesla and SpaceX “are seeing significant recent inflation pressure in raw materials & logistics.”
Key materials, such as nickel, a vital component for EV batteries, have been experiencing price surges that are worrying auto manufacturers, many of whom are gearing up to go all-electric. The continuing shortage of semiconductors also has left many auto manufacturers needing to limit their production. At the same time, recent flare-ups of Covid-19 cases in China and subsequent lockdowns have added additional strain to already-stretched supply lines.
As for the price increases themselves, the starting price of the Model 3 Performance on Tesla’s Chinese website is currently listed at 367,900 yuan, which is equivalent to $57,648. On March 10, the listed price was 349,900.
Meanwhile, the Model Y Long Range in China now costs 375,900 Yuan, up from the previous price of 357,900 yuan, while the Model Y Performance is currently priced at 417,900 yuan, up from 397,900 yuan previously.