Elon Musk says supply-chain issues have forced Tesla to increase prices multiple times this year, pushing its cheapest model to $42,000
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- Tesla CEO Elon Musk said Tesla has been forced to raise prices to combat supply-chain issues.
- The carmaker raised prices for its Model 3 and Model Y by $2,000 this week.
- Tesla has hiked prices across its line-up multiple times this year.
Tesla has raised its car prices multiple times this year.
In the beginning of the year, the electric carmaker implemented a series of price hikes across its line-up , and again in July. Most recently, Tesla increased its prices for the Model 3 and Model Y in an overnight update on its website on Wednesday in the US - tacking on a $2,000 price increase to its cheapest vehicle.
The Model 3 Standard Range Plus hit a $41,990 price point, while the Model 3 Performance price climbed to $57,990. Model Y prices also climbed $1,000 to $2,000 higher.
The starting prices for the Model 3 and Model Y were cut earlier in 2021, but have since been raised twice - making the Model 3 Standard Range Plus $5,000 more than it was in February and much more expensive than the $35,000 price point that was available before the pandemic started.
During the company's annual shareholder meeting on Thursday, Tesla CEO Elon Musk said the supply-chain crisis has necessitated the price hikes.
"We are seeing significant cost pressure in our supply chain," Musk said. "So we've had to increase vehicle prices, at least temporarily, but we do hope to actually reduce the prices over time and make them more affordable."
A Tesla spokesperson did not immediately respond to a request for comment.
Musk pointed out that Tesla has had to shell out extra money to fly in parts in order to avoid major bottlenecks at US ports. In the past, Musk has said the automaker has faced "super crazy shortages" and "insane difficulties" from the global computer chip shortage, as well as port delays and COVID-19 restrictions in China.
In 2020, Musk promised Tesla would release a cheaper vehicle near a $25,000 price point by 2023 - nearly half of the price tag for the automaker's current cheapest vehicle. As with any timeline Musk gives, take it with a grain of salt, as he has previously said hitting specific product deadlines isn't his strong suit.
Despite the supply-chain snags, Tesla posted its most profitable quarter to date in June after it started raising its prices, hitting a net income exceeding $1 billion.
from Business Insider https://ift.tt/2YyUgoI
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