Another Day, Another Price Increase For Tesla

Tesla (TSLA) has raised the price of its EVs again, marking its second price increase in just under a week.

The price increase affects the automaker’s full lineup in the U.S. and some models in China and comes just days after Tesla hiked the price of certain versions of its Model 3 and Model Y vehicles.

Tesla did not publicly announce the price increase, nor did it give any reason why the price tags on the EVs were now higher. However, CEO Elon Musk warned of inflation challenges for the company just days earlier.

In a tweet that was posted on Sunday, Musk said that Tesla, along with SpaceX, was seeing “significant recent inflation pressure in raw materials & logistics.”

The Russia-Ukraine war is putting a strain on nickel supplies, as well as steel and palladium, causing the price of the material, which is used in EV batteries, to rise.

The price increase that Tesla initiated last week on the Model 3 and Model Y only affected long-range variations of the vehicles that used nickel in its battery cells, Electrek reported.

Compounding the issue is a significant COVID outbreak in China that has forced as many as 30 million people to be locked down, pinching the supply chain further with key components, such as semiconductor chips, which were already in short supply for the auto industry, CNBC reported.

According to The Verge, the new price hike puts the EVs at a 5% to 10% increase, with the cheapest Tesla Model 3 Rear-Wheel Drive now starting at $46,990, and the top-end Model X Tri motor now priced at $138,990.

Tesla increased its U.S. vehicle prices as follows, according to The Verge:

• Model 3 Rear-Wheel Drive: previously priced at $44,990, increased to $46,990.
• Model 3 Long Range: previously priced at $51,990, increased to $54,490.
• Model 3 Performance: previously priced at $58,990, increased to $61,990.
• Model Y Long Range: previously priced at $59,990, increased to $62,990.
• Model Y Performance: previously priced at $64,990, increased to $67,990.
• Model S Dual Motor: previously priced at $94,990, increased to $99,990.
• Model S Tri Motor: previously priced at $129,990, increased to $135,990.
• Model X Dual Motor: previously priced at $104,990, increased to $114,990.
• Model X Tri Motor: previously priced at $126,490, increased to $138,990.

Tesla in China saw the Model 3 Performance go up to 367,900 yuan, while the Model Y Long Range increased to 375,900 yuan, and the Model Y Performance now has a price tag of 417,900 yuan, according to the company’s website.

The South China Morning Post reported that the Model 3 Performance was previously priced at 349,900 yuan, while CNBC said that the Model Y Long Range and Model Y Performance were priced at 357,900 and 397,900 yuan, respectively.

As of Tuesday at 9:34 a.m. ET, shares of Tesla were trading at $779.47, up $13.10, or 1.71%.