Tesla, the world’s largest producer of electric cars, has hiked the price of its vehicles by thousands of dollars in the past two weeks alone as the price of raw materials like metal exploded.
List prices of several new Tesla models climbed on Tuesday, according to the company’s website, from March 1 prices. Tesla CEO Elon Musk earlier explained why prices were rising, saying in a Tweeter Sunday that the company “sees significant recent inflationary pressure in raw materials and logistics”.
Tesla’s Model X now costs $114,900, a jump of over $10,000. Model S price increased $5,000 to $99,990; the Model 3 Performance price of $3,000, at $61,990; and the $4,000 Model Y priced at $62,990.
Across the business, Tesla’s most recent price increases are between 3% and 5% in the United States and China, Credit Suisse analyst Dan Levy said in a research note. Although it is unclear exactly when the price increases took place, Reuters reported Tesla raised prices twice in just a few days. Tesla did not respond to a request for comment on its price increases on Tuesday.
Car prices – gas and electric – are skyrocketing as inflation drives up the price of everything from food and rent to clothing and appliances.
Consumer prices in February increased at an annual rate of 7.9%the US Department of Labor said last week – the fastest pace of inflation since 1982. But the average price of a new car is up 12% from a year ago, according to the Labor Department reports. A typical new car now costs $46,404according to Kelley Blue Book.
(Used car prices have risen 41% over the past year as demand far outstrips supply. The average price of a used car is around $29,000according to Edmunds.)
Auto industry experts predicted new vehicle price hikes would come soon after seeing aluminum, nickel and palladium prices soar in recent weeks as the invasion of Ukraine by Russia on February 24 seemed increasingly imminent. S&P Global Mobility analysts told CBS MoneyWatch they expect the price of a Mercedes EQS to rise to as high as $11,000 due to rising metal prices.
Aluminum, nickel and palladium are used to make catalytic converters, air conditioner condensers and other essential automotive parts. Nickel is used to make batteries found in Tesla’s Model Y, for example.
the Russia–Ukraine War drives up metal prices further as more US and European companies sever ties with Russian metal producers.