Global Chip Shortage: Tesla hikes the Price of its Electric Vehicles
Big shock: Tesla’s electric car becomes expensive, cheapest car now starts at $ 46,990
Elon Musk said in a tweet that Tesla and SpaceX are seeing recent inflationary pressures in raw materials and logistics. Affected by rising raw material prices and global chip shortages, Elon Musk-powered Tesla has increased prices in its line-up for electric vehicles and the cheapest Model 3 rear-wheel drive car is now priced $46,990 instead of $44,990. Tesla’s top-end Model X tri-motor model saw a price hike of $12,500, up from $126,490 to $138,990. Tesla last week raised the prices of the Model 3 and Model Y by $1,000, as nickel prices crossed $100,000 a tonne.
While the Model 3 Long Range price has been increased from $51,990 to $54,490, the Model 3 Performance variant will now cost $61,990 (earlier $58,990). According to data from Wayback Machine, the price of the Model Y Long Range has been increased from $59,990 to $62,990 and the Model Y Performance model will cost $67,990 (earlier $64,990). Musk said on Monday that Tesla and SpaceX will face significant inflation in raw materials as well as logistics.
Musk said in a tweet that Tesla and SpaceX are seeing recent inflationary pressures in raw materials and logistics. However, he said his companies are “not alone”, as the Ukraine-Russia conflict has driven commodity prices to their highest level since 2008. Prices of raw materials used to make EVs such as steel, nickel and palladium have risen in the wake of Russia’s invasion of Ukraine. In 2021, Tesla made several price hikes and blamed it for being under pressure from supply chain disruptions following the COVID-19 pandemic. .
Rising nickel prices have fulfilled the dream of Musk and other automakers to introduce affordable electric cars soon. Nickel has long been widely used in batteries, usually in nickel-cadmium and long-lasting nickel metal hydride rechargeable batteries, which emerged in the 1980s.
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