Tesla continues to raise prices for its lineup
Elon Musk announced the Tesla Model 3 in 2017 on an affordable platform. This $35,000 sedan lasted from 2019 to 2020. Since then, the company has announced numerous price increases across its lineup, including two last week.
Musk told his 78 million Twitter followers in March that the automaker was feeling pressure from inflation in raw material and logistics costs.
Almost six years ago, Musk released a blueprint for Tesla to build an affordable, high-volume car. The original plan was to work on a $25,000 electric vehicle after Models 3 and Y. According to a report from Bloomberg, Tesla’s latest quarterly earnings call, Musk said the company was not currently working on the car. $25,000 to which he was referring.
The cheapest Tesla now starts at $46,990, up $2,000 since the last increase. The Model Y SUV saw a $3,000 increase from $59,990 to $62,990.
As the models gain in value, the prices go up. The Model X SUV saw a $10,000 increase from $104,990 to $114,990. Tesla’s highest version, the Model X Tri Motor, saw its price increase by $12,500, from $126,490 to $138,990.
Although recent price increases have been more frequent, Tesla is no stranger to the trend. It has raised the prices of Model 3s and Ys about a dozen times in 2021 alone.
The company hasn’t officially cited a reason for the increases, but as Musk said, supply chain disruptions and the threat of raw material shortages due to the war in Ukraine are certainly a factor. Tesla has been buying aluminum from a Russian company since 2020.
Materials such as nickel, a key component of electric vehicle batteries, are also imported from this region. Additionally, rising gasoline prices have led more consumers to consider electric vehicles, increasing demand despite limited supply.
To put those Tesla prices into perspective, according to car-buying website Edmunds, the average transaction price for a new electric vehicle soared to $60,054 in February, using data collected before Russia’s announcement. invade Ukraine.
However, federal tax credits used to encourage buyers to buy battery electric vehicles and plug-in hybrids no longer help Tesla customers, due to a cap the company exceeded years ago. Tesla, along with others, is pushing to overhaul how the federal government supports electric vehicle purchases, though it’s currently stalled in Congress.