Price increases are now affecting the Model S and X cars.
As Tesla raises the price of multiple automobile models again again, inflation continues to ruin the fun.
The price increase that is affecting the Model Y, Model 3, Model S, and Model X lines was reported by the electric vehicle (EV) news website Electrek(opens in new tab). The Model X Dual Motor All-Wheel Drive Long Range now has the largest price increase, going from $114,990 to $120,990, a $6,000 difference. The price of the Model S Dual Motor All-Wheel Drive Long Range increased by $5,000 to $104,990.
Two vehicles from the well-liked Model Y range were impacted. The price of the Model Y Long Range has increased by $3,000 to $65,990 from its previous $62,990 price. The price of the Model Y Performance increased by $2,000 to $69,990. The Long Range Model 3 is the last vehicle, with a price rise of $2,500 from $54,490 to $57,990.
Tesla hasn’t yet explained why it is raising pricing. We did try to contact them to see if they might provide some explanation, but as of this writing, we haven’t heard back.
In the past few years, price rises for Tesla vehicles have become rather routine. And among the impacted vehicles, you’ll see a pattern: The Model Y and Model 3 lines are frequently used.
For instance, the prices of the Model Y and Model 3 increased by 20% and 23%, respectively, in 2021. Two Model 3 vehicles (the Standard Range Plus and Performance) had price increases a little earlier, in October 2021. What gives, then?
One could argue that issues with the supply chain are to blame for the price increase. Even if the COVID-19 outbreak is beginning to feel like a distant memory, problems with the global supply chain continue to exist. Elon Musk, the CEO of Tesla, has previously complained(opens in new tab) about supply issues, and as someone with first-hand experience, he makes a valid point.
Tesla EVs may become more affordable as things calm down.
Analysis: Issues in business
While the supply chain is undoubtedly an issue, it is also impossible to disregard Tesla’s recent financial difficulties. In light of a likely impending economic recession, Musk reportedly wants to fire 10% of Tesla’s paid staff and halt hiring. Then there is the controversy around the purchase of Twitter.
Nearly two months have passed since Musk first revealed his intent to buy the social media giant, but the transaction is still pending. And the only significant effect of the Twitter deal has been a decline in the price of Tesla stock.