Prices for the Tesla Model 3, Model Y, and Model X have increased in the United States and China. In the face of rising raw material costs, according to the company, Tesla boosted the pricing of the variants of the Tesla Model 3 and Tesla Model Y around a dozen times in the United States last year.
Tesla hikes Model 3, Model Y electric car prices as nickel costs rise
In contrast to other automakers, Tesla recently hiked costs for its long-range and performance models, although keeping its base prices unchanged since January.
Prices for the performance Model Y have increased by 7.7 percent since January, while the long-range version has increased by 8 percent in the same time period. With the rise on Thursday, the cheapest version has seen a 5% tesla price increase over the previous week.
Shanghai's automobile assembly lines are idle due to a citywide shutdown to stop the Covid-19's spread
Another piece of bad news arrived a few days later, when Chinese authorities, combating a fresh outbreak of Covid-19, began closing down significant population centers across the country to prevent the virus from spreading.
Tesla was forced to shut down its manufacturing in Shanghai for a few days as a result of the lockdowns, but the firm is again back in business at what has become the company's most significant operation in the world, producing automobiles.
The business allegedly resumed manufacturing at its Shanghai site Friday following a two-day hiatus due to an increase in coronavirus cases in China. Reuters cited sources saying enough workers had returned to get the factory operational. The plant reportedly resumed two-shift work at 7 a.m. local time. Returning employees must be tested for Covid-19.
Tesla is the market share leader in the United States, but Elon Musk and the firm are well aware that much of the company's growth objectives are related to the company's success in other parts of the world.Musk and Tesla, in contrast to many other U.S. technology businesses that have a tense relationship with the Chinese government, have a rather substantial voice at the table.
Tesla hikes China, US prices for Model 3 and Model Y cars (source)
The price of raw materials required in electric car production has risen globally due to the Russian invasion of Ukraine
The price of nickel, lithium and other materials continues to rise, thus Tesla raised the worth of its goods. A rise in raw material costs, exacerbated by Russia's invasion of Ukraine, may delay Tesla CEO Elon Musk and other auto executives' plans to introduce more cheap electric vehicles, according to U.S. News.
Inflation threatens to derail the long-term decline in battery prices, the most expensive component of electric vehicles. According to Gregory Miller of Benchmark Mineral Intelligence, the event is anticipated to postpone the broad adoption of developments in the concept's technology.
How much does Model Y Cost Now?
According to The Verge, Tesla's Model Y Long Range was $59,990 before this week's price rise, and it is now $62,990 after the price increase. This is a $3,000 increase, or around 5% of the car's purchase price. They also discovered that the Model Y Performance has raised in price from $64,990 to $67,990, based on archived versions of the Tesla website from the previous week. Once again, this represents a remarkable increase of $3,000 in value.
The Model Y Long Range car's US pricing has risen 20% since January 2021, while the Model 3 Long Range sedan's price has risen 10.6%. Reuters photo (Source)
How much does Model 3 Cost Now?
The Model Y isn't the only Tesla whose price has increased in recent months. Tesla's most affordable model, the Model 3, has also become more pricey. Tesla's popular Model 3 Rear-Wheel Drive, which is the company's most affordable vehicle, has seen its price hike from $44,990 to $46,990. That is an increase of £2,000, or around 5%. Aside from that, the Model 3 Long Range has seen a price rise from $51,990 to $54,490 and the Model 3 Performance has seen a price increase from $58,990 to $61,990.
In response to a request for comment from CNBC on the story and price hikes, Tesla did not immediately react. China is becoming a more significant market for Tesla, despite the difficulties. After accounting for only 12 percent of overall income in 2019, the country's percentage of total revenue increased to 26 percent in 2021. Tesla and the Chinese carmaker BYD are the dominant players in the rapidly expanding tesla china sales and the Chinese electric vehicles industry.