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.
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.
Moving lumbar was removed only in front passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no usage. Not worth cost/mass for everyone when almost never used.
Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially.
— Elon Musk (@elonmusk) May 31, 2021
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.