Tesla is, unfortunately, subject to inflation and increases in material costs just like the rest of the world. So, as the cost of production increases, so does the price of a car. While they already aren’t the most affordable electric vehicles out there, they’ve just gotten a bit more expensive.
Tesla raised the price on every model they currently offer
According to The Verge, material costs and inflation are behind the recent price increase in the EV giant’s vehicles. Overall, the pricing for each model saw an increase of between five and 10 percent. The most significant price increase for a single vehicle came in at a whopping $12,500 for the Tesla Model X Tri Motor, the most expensive vehicle currently in the Tesla lineup.
The cheapest Tesla offering, the Model 3 Rear-Wheel Drive, saw an increase of $2,000 and now has a starting price of $46,990. The Model 3 Long Range price went up $2,500, and the Model 3 Performance gained $3,000. So, their new prices are $54,490 and $61,990, respectively.
The Model Y Long Range costs $62,990, an increase of $3,000. Additionally, the Model Y Performance saw the same $3,000 increase and now costs $67,990.
The more expensive Tesla vehicles, the Model S and Model X see the most significant price increases. The Model S Dual Motor increased $5,000, and the Tri Motor variant went up $6,000. Pricing is now $99,990 and $135,990.
The Model X Dual Motor price went up a whopping $10,000 and now costs $114,990. Finally, the biggest increase across the board is the Model X Tri Motor and its $12,500 increase. Now, landing yourself one of these costs a cool $138,990.
This is also the second Tesla price increase this month. Last week, Tesla raised the price of certain long-range models.
Material prices are increasing as rapidly as demand.
As Russia’s invasion of Ukraine continues to affect the price of nearly everything, we’ll only continue to see prices increasing in the automotive industry. Recently, the price of gas accelerated so rapidly that Tesla saw a massive increase in orders. So, this price increase doesn’t come at the most timely of opportunities, seeing how they may drive away potential customers.
The Ukraine invasion has taken a serious toll on the flow of materials like steel, nickel, and palladium. All of which are needed in the production of EVs. This is not only affecting the cost of production but the speed as well. Currently, some Tesla models are not expected to be delivered until September.
Between the six-month wait and the soaring material costs involved in the production, those looking to purchase a Tesla may want to turn to the used market. Of course, used vehicle prices are also steadily increasing, so it’s a bit of a rough situation all around. Turning to Tesla alternatives in the EV world is another great option for those looking to get behind the wheel of an EV immediately.