The Strategist

Tesla raises US prices for its cars again

06/17/2022 - 10:34

According to Reuters, Tesla has hiked pricing on all its electric vehicle models marketed in the United States owing to persistent supply chain issues and rising raw material prices.

Can Pac Swire
Can Pac Swire
The price of the Model Y increased from $62,990 to $65,990. According to Credit Suisse, this is the manufacturer's fourth price hike on a specific model since the beginning of the year. Previous hikes were attributed to the fact that lithium, which is used in the construction of electric car batteries, is becoming more expensive, according to Tesla’s CEO Elon Musk.

Aluminum, which is used in the production of automobiles, is also growing more costly, and there is still a chip scarcity. "While some fear that increasing pricing will kill demand for Tesla automobiles, Tesla itself is having supply issues," Credit Suisse pointed out.

Elon Musk has lately expressed concern about the potential of a recession, stating that he has a "very awful feeling" about the economy and that Tesla will have to reduce 10% of its workforce.