Elon Musk blames ‘supply chain pressure’ as Tesla announce $500 price increase on all models in FIFTH hike since February
- Tesla CEO Elon Musk is blaming ‘supply chain pressures’ for the fifth price increase on Model 3 and Model Y vehicles since February
- He said the prices of raw materials especially were increasing
- Prices on the Model 3 Standard Range Plus increasing more than 8 percent
- Musk also blamed the removal of lumbar support on a lack of usage
Elon Musk is blaming ‘supply chain pressures’ for the fifth incremental price increase on Tesla vehicles since February.
In a tweet on Monday, Musk wrote: ‘Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially.’
He was responding to an unverified Twitter account called @Ryanth3nerd, which wrote, ‘I really don’t like the direction @tesla is going raising prices of vehicles but removing features like lumbar for the Model Y…’
The changes see around $500 added to the price of the vehicles, taking the top-of-the range Model Y to 51,990.
The price increases will affect the Model Y, which has had their prices increased five times since February
The price increases will also affect Model 3 cars
Earlier in May, Tesla increased its prices on the Model 3 and Model Y, the fifth time the automaker increased its prices since February, according to Electrek.
Tesla had made several changes to the Model 3 and Model Y prices in February, mostly decreasing them.
But prices were hiked for the Model 3 in early March, and then again later in the month.
In April Electrek reported that Tesla again increased prices across the Model 3 and Model Y lineup.
There were further increases in late April and another in early May.
As a result of these five price increases, the cost of Tesla’s cheapest vehicle — the Model 3 Standard Range Plus — has increased from a low of $37,000 to $40,000, a more than 8 percent increase in prices.
The Low Range AWD has also seen a price increase of $2,500 since March to $46,490 in May.
Musk wrote that Tesla removed lumbar support on the Model 3 and Model Y vehicles because logs showed they were barely used and it was not worth the cost
Tesla CEO Elon Musk tweeted on Monday that prices will once again increase as a result of supply chain price pressure on raw materials
During an an earnings conference call in April, Musk said Tesla had experienced ‘some of the most difficult supply chain challenges,’ citing a chip shortage. ‘We’re mostly out of that particular problem,’ he added at the time.
In response to the removal of lumbar support on the passenger side in Tesla’s Model Y, Musk tweeted, ‘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.’
Tesla doesn’t adhere to the industry standard of updating its vehicles once a year with a new ‘model year,’ but instead introduces changes whenever they become available.