In response to ongoing issues with the world’s supply chains and rising prices for raw materials, Tesla raised pricing for all of its car models in the United States yet again.
After delaying the deliveries of some long-range models in the United States by up to a month, the electric carmaker raised the price of the Model Y Long Range to $65,990 from $62,990, according to the Model Y information posted on its website on Thursday (All models new and old prices are listed at the end of the article).
The price increase of 5% occurs as raw material costs for everything from lithium to aluminum used in cars and batteries rise, and automakers struggle to get chips and other supplies due to a widespread shortage in the market.
According to Credit Suisse, this price increase may be the fourth to occur in the United States in 2022. Tesla’s supply is now constrained, despite some people’s concerns that price increases will kill demand.
Elon Musk, the CEO of Tesla, has previously urged manufacturers to enter the lithium market by claiming that lithium is to fault for pricing hikes and “a limiting factor” to the expansion of electric vehicles (EVs).
In their race to catch up with Tesla despite rising demand, several automakers are expected to deliver electric cars for the first time.
In recent weeks, Musk has issued several recession-related warnings. Earlier this month, he had declared that he had a “super bad feeling” about the state of the economy and that Tesla would have to eliminate 10% of its workforce.
Here’s the new and old pricing comparison for all Tesla models:
- Tesla Model X: The dual-motor all-wheel-drive Long Range Model X increased from $114,990 to $120,990 today. That’s an increase of $6,000 for the electric SUV. The Model X Plaid price at $138,990 has not yet been affected.
- Tesla Model S: The dual-motor all-wheel-drive Long Range Model S went from $99,990 to $104,990 on Wednesday, an increase of $5,000. Similar to the Model X, the Plaid will remain the same price at $135,990.
- Tesla Model Y: Both versions of the automaker’s most popular model increased. The Long Range went from $62,990 to $65,990 and the Performance went from $67,990 to $69,990, an increase of $3,000 and $2,000, respectively.
- Tesla Model 3: The Long Range increased from $54,490 to $57,990, an increase of $2,500.