Inflation can’t elude everyone, even the “forward thinking” Elon Musk who boasted about shoring up nickel supply earlier this year before prices of the metal went on a tear.
It appears like Tesla is facing the issue of rising prices elsewhere, as the company is increasing prices across its lineup, a new report from electrek noted this week. The price of some vehicles rose by as much as $6,000, the report says.
Tesla also spent the better part of 2021 raising prices, the report noted. The company’s last notable price increase was in March 2022, electrek reports, followed by a smaller increase on long-range vehicles in April 2022.
Per a Bloomberg wrap up, price hikes will be as follows:
The Model 3 long range price rose $2,500 to $57,990
The Model Y long range rose to $65,990 from $62,990
Model Y performance rose to $69,990 from $67,990
Model S dual motor all-wheel long range rose to $104,990 from $99,990
Model X dual motor all-wheel drive long range rose $6,000 to $120,990
Far be it for us to agree with electrek on anything, but we think they nailed the reason for the price hikes in their assessment, where they say: “Increases in raw material prices and logistic costs are usual suspects.”
After all, which industry isn’t dealing with rising prices?
The outlet also poses the idea that demand is helping move the price higher, but only because Tesla wants to try and pull forward revenue to offset future cost hikes. In other words, Tesla has adopted an inflationary mindset:
Also, Tesla has a significant backlog of orders with new orders for several of those models only being delivered 6 to 12 months from now, according to the online configurator. Therefore, Tesla has to try to predict cost increases for around the time that it will be producing those vehicles 6 to 12 months from now.