Inflation continues to spoil the fun as Tesla is raising prices on various car models yet again.
Electric vehicle (EV) news site electrek (opens in new tab) noticed the price increase affecting the Model Y, Model 3, Model S and Model X lines. As it currently stands, the Model X Dual Motor All-Wheel Drive Long Range has seen the biggest increase from $114,990 to $120,990; that’s a difference of $6,000. The Model S Dual Motor All-Wheel Drive Long Range is up $5,000 from $99,990 to $104,990.
For the popular Model Y line, two cars were affected. The Model Y Long Range is now priced at $65,990, up $3,000 from its previous price of $62,990. The Model Y Performance is up $2,000 ($67,990 to now $69,990). And the final car is the Long Range Model 3, going from $54,490 to $57,990 – an increase of $2,500.
So far, Tesla hasn’t said why the company is raising prices. We reached out to them to see if they could explain, but as of this writing, we have not received any response.
Tesla price hikes have become quite common in the last couple of years. And you’ll see a pattern among the affected cars: it’s usually the Model Y and Model 3 lines. This makes sense as these two lines are among the most popular in Tesla’s lineup.
As an example, back in 2021 the Model Y and Model 3 went up in price by 20% and 23%, respectively. A little before that in October 2021, two Model 3 cars (the Standard Range Plus and Performance) also went up in price. So what’s up?
It can be argued that the price increase is because of supply chain problems. Even though the COVID-19 pandemic is starting to seem like a distant memory, the world is still dealing with global supply chain issues. Tesla CEO Elon Musk complained (opens in new tab) about supply problems in the past, and as someone with intimate knowledge, he makes a good point.
Maybe when things calm down, Tesla EVs will become cheaper.
Analysis: business problems
While the supply chain is certainly a factor, you can’t ignore Tesla’s recent business woes either. According to Reuters, Musk wants to lay off 10% of Tesla’s salaried workers and halt hiring due to a possible impending economic recession. Then there’s the whole debacle surrounding the Twitter takeover.
It’s been nearly two months since Musk announced his plan to acquire the social media platform with the business currently on hold. And all that’s really come out of the Twitter deal is Tesla shares plummeting in value.
If you’re interested in electric vehicles, recently wrote about EVs potentially being charged by the roads they drive.