Key highlights:
- Tesla increases the price for EVs for U.S. Model and China-made Model.
- The invasion has affected the costs of raw materials causing the price hike.
- Analysts predict a price hike in other materials and batteries in the coming period.
Tesla announced that it will raise prices for its U.S. Model Y SUVs and Model 3 Long Range Sedans by $1000 each. The price surge also includes some China-made Model 3 and Model Y vehicles by 10,000 Yuan ($1,582.40). It was confirmed from the website.
This is not the first time that Tesla has raised its prices. The Electric-car maker has increased prices for the most affordable version of Model 3 and Model Y about a dozen times last year in the U.S.
Tesla EV price hike explained
Tesla EV maker’s Model Y Long Range car has jumped 20% from January 2021 in the U.S. market. Alongside, there was a 10.6% hike for its Model 3 Long Range Sedan during the same period.
The price hike has been due to the surge in raw materials costs. Due to Russia’s invasion of Ukraine, raw material costs have increased. The invasion could set back the dream of Tesla CEO Elon Musk and other executives to launch more affordable EVs.
Analysts predict that the rising prices of nickel, lithium, and other materials threaten to slow and also temporarily affect the long-term falling costs of batteries, which is also the most expensive part of electric vehicles. This will hamper the wide adoption of EVs.
In recent news…
Tesla got the approval from Berlin- Brandenburg Ministry of Agriculture, Environment and Climate Protection (MLUK) has given the green light to start production at the Giga factory. The final approval came after 843 days when Elon Musk announced that the European Tesla factory will be built in Berlin, Germany Nov 2019. The approval took a long because Tesla has added around 4680 cell production buildings to the application along with the manufacturing factory for the Model Y factory.
