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Home›Shipping Rates›Tesla’s vehicle prices rise due to pressure on supply chain, Musk says

Tesla’s vehicle prices rise due to pressure on supply chain, Musk says

By Cynthia D. Caldwell
June 1, 2021
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A Tesla Model 3 electric vehicle made in China is seen ahead of the auto show in Guangzhou, Guangdong province, China on November 21, 2019. REUTERS / Yilei Sun / File Photo

The price of Tesla vehicles (TSLA.O) is rising due to supply chain pressures in the auto industry, especially for raw materials, Elon Musk said on Monday in response to a tweet.

“Prices are rising due to the strong pricing pressure in the industry-wide supply chain. Raw materials in particular,” Musk said in a tweet.

He was responding to an unverified Twitter account called @ Ryanth3nerd, which read: “I really don’t like the direction that @tesla is going to raise vehicle prices but removing features like lumbar for the Model Y …”

In May, Tesla increased its prices for the Model 3 and Model Y, the automaker’s fifth additional price increase for its vehicles in just a few months, the Electrek website reported.

On an earnings conference call in April, Musk said Tesla had experienced “some of the toughest supply chain challenges,” citing a chip shortage. “We are for the most part out of this particular problem,” he added at the time. Read more

Responding to the removal of the passenger side lumbar support from Tesla’s Model Y, Musk said, “Movable lumbar was only removed in the front passenger seat of 3 / Y (obviously not there in the rear seats). The logs showed almost no use. Not worth the cost / weight to everyone when hardly ever used. “

Earlier Monday, the Electrek reported that new Tesla Model Y owners were reporting that their electric SUVs were delivered without lumbar support on the passenger side.

Our Standards: Thomson Reuters Trust Principles.



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