Tesla Raises EV Prices Again In Third Increase In A Week

Tesla (TSLA) has increased the price of its electric vehicles once again, marking the third time in a week that it has raised prices on its EV lineup without indicating the reason for the hike.

This time the price jump comes for cars in China, with its lowest-priced Model Y EV, now selling for 15,060 yuan ($2,373) more, CNBC reported.

The Model Y EV now has a price tag of 316,900 yuan ($49,932), up from the previous price of 301,840 ($47,559), the news outlet said.

On Tuesday, Tesla also raised the prices for the long-range and performance versions of the Model Y as well as the Model 3 Performance configuration in China. The company also increased prices last Thursday.

While Tesla didn’t provide a reason for the price increases in China, CEO Elon Musk has warned that the automaker has been struggling with inflation and supply chain challenges.

In a Twitter post on Sunday, the billionaire said, “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics.”

The cost of materials such as nickel, which is used in some EV battery systems, as well as steel and palladium prices, have increased amid the Russia-Ukraine war.

Additional supply constraints come as China sees millions of people locked down due to a major COVID outbreak that has disrupted businesses throughout the country. This also forced Tesla to temporarily halt operations at its Shanghai plant for two days, Reuters reported.

Tesla also increased the price of all U.S.-based EV models from 5% to 10% on Tuesday, The Verge reported. An earlier price increase by the electric carmaker saw the Model 3 and Model Y long-range models each increase by $1,000, according to Electrek.

As of Thursday at 10:17 a.m ET, shares of Tesla were trading at $846.49, up $6.26, or 0.75%.