US automaker Tesla announced a price hike on all of its EV offerings, ranging from the Model 3 to Model S. The sudden increment came on the night of June 15th, following a hike earlier this year. The Tesla price hike is being attributed to increased production costs, high demand, and an increase in the cost of raw materials.
During Tesla’s Q1 2022 Earning Call, CEO Elon Musk commented:
“On the price increase front, I should mention that it may seem that we’re being unreasonable about increasing the prices of our vehicles given that we had record profitability this quarter, but the wait list for our vehicles is quite long and some of the vehicles people will order the wait list extends into next year.
So, our prices of vehicles ordered now are really anticipating supplier and logistics cost growth that we’re aware of or believe will happen over the next six to twelve months.”
Here’s how the Tesla price hike will affect the cost of its cars
The EV manufacturer increased the price of its Model Y LR from $62,990 to $65,990.
The Model Y Performance got an increase of $2,000 and is now priced at $69,990.
The price of Model X got increased by $6,000 and is now priced at $120,990.
Model S got bumped by $5,000 and now costs 104,990.
Model 3 LR also got a price increase of $2,000 and now costs $57,990.
The prices of Model 3 Base, Model 3 Performance, Model X Plaid, and Model S Plaid remain unchanged. Following the Tesla price hike, other EV manufacturers are expected to follow suit.