Wednesday, May 29, 2024
NewsTesla Increases Pricing To Offset Increasing Material Costs

Tesla Increases Pricing To Offset Increasing Material Costs

Supply chain pressures are the major culprits behind constant price hikes


  • Tesla’s also removed some features with reducing pricing.

  • The Model 3 and Model Y have seen their prices climb for the 5th time this year.


Tesla is also dealing with the same issues plaguing the automotive industry these days. One chief issue is the ongoing global chip shortage which is causing the California-based EV car company. Tesla’s Musk has found a different way to address the issue in the near future.

2021 Tesla Model 3 | Photo: Tesla

One way they’ve found is by increasing the purchase price of its two most popular models. The Model Y SUV and Model 3 sedan have both seen a number of spikes in the last few months but that’s not all. In some vehicles, Tesla has also removed some features without reducing pricing.

The goal seems not to be recouping incurred costs, but to help increase funds to pay for supplies in advance. According to MarketWatch, Tesla might be exploring the feasibility of buying a chip plant to help avoid future situations such as the one they, and the industry, are currently going through.

This latest round of price increases, to the tune of $500, for the Model 3 and Model Y, will unlikely affect sales for Tesla. For the moment, they remain the biggest EV show in town but this will change in the next 12 to 18 months.

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Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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