Have Tesla Prices gone up? You may be wondering why, and there are some reasons for this. Listed below are the top reasons. Tesla, Inc. is an American electric car and clean energy company. It designs and manufactures electric cars, battery energy storage, solar panels, roof tiles, and related products. But what are all the other reasons for Tesla prices to go up? Let’s look at each in turn. First, what does Tesla do to increase prices?
The CEO of Tesla recently tweeted about inflation and logistical problems, claiming that the cost of raw materials has gone up. The company’s online ordering model makes changes to prices visible directly to consumers. Tesla’s competitors add markups to push prices beyond the MSRP. Several of these manufacturers have closed the range gap, and their vehicles are available at a much lower price. While this is a valid concern, it is worth considering.
Model 3 and Y prices have increased by over 20% this year. Even the lowest-cost Model 3 has increased by more than 20% in 2018. Prices across the entire lineup are expected to continue rising through 2021. The price of the Model 3 Standard Range Plus, also known as the Rear-Wheel Drive, has increased by over 20% this year. Earlier this year, it was selling for $37,000. Now, it costs $45,000.
The Model 3 and Y have also seen price increases in the last couple of weeks. The Model Y has seen a nearly ten percent price increase, and the Model S and Model 3 Performance have increased by less than 5%. However, the Model 3 Performance price has increased by more than $3,000, and the Model 3 Long Range is up by nearly $1,000 to $64,190. Those two cars are also the most expensive Tesla vehicles.
Last week, Tesla implemented price increases across its entire line of electric vehicles. Model 3 Rear-Wheel Drive is now $46,990, while the Model X Tri motor has increased by nearly $12,500. These increases are effective across all Model 3 models and will be gradually implemented throughout 2021. In addition, the company also started charging an extra $1,000 for models with longer-range battery packs. These price increases aren’t a big shock, as they’re still well below the previous price of the Model 3 Rear-Wheel Drive, but they’re certainly a sign that Tesla is taking inflation into account.
Last week, Tesla increased prices for all Model 3 models in the U.S. and Canada. The Model X was the only Tesla model not to see an increase in price, but it also has the most delayed delivery times. While there are other factors that affect the prices of Model X, Tesla has a long way to go before pricing increases become more drastic. Ultimately, consumers should be cautious about deciding which model to purchase.
In addition to these reasons, supply chains have also been challenged. Supply chains have been compromised by recent Covid cases, and critical components remain in short supply. With these reasons, Tesla is facing a serious supply chain challenge. For example, on Tuesday, the company’s China website listed the starting price for the Model 3 Performance at $367,900, up from its previous price of $349,900. Meanwhile, the Model Y Long Range has been increased to 375,900 yuan in China, from $357,900.
While other electric vehicles have decreased in price, Tesla’s entry-level Model 3 costs $46,990, a price that was almost $10,000 cheaper three years ago. The rise in price comes after the company began to sell vehicles directly to consumers, so Tesla has the right to raise the retail price as it pleases. In fact, it has already bumped prices several times in the past year. Even though Tesla is still a mass-market electric car, the Model 3 has become too expensive for most everyday consumers.
While Tesla has not provided an official statement, some analysts believe that the price hikes are linked to rising prices of metals used in electric vehicles. Metal prices have surged in recent weeks, and Tesla’s supply chain is under pressure. Nickel and palladium, used in electric car batteries, are among the critical materials in the company’s supply chain. Tesla has already taken steps to diversify its supply chain and has recently acquired millions of euros of aluminum from Russian company Rusal.
As a Tesla investor, Jeremy Johnson first invested in the company in July 2017. He admires Musk’s leadership style, and is a regular contributor to Torque News. Follow him on Twitter or LinkedIn. He covers the latest developments in the Tesla world. If you’re still undecided, follow his Tesla articles! You’ll be glad you did! And you’ll be pleased to know that Tesla has sold over 200,000 electric vehicles in the past few months.