Tesla Raises Its Prices in U.S. After Elon Musk Warns of Inflation Pressures

by Madison Miller

Inflation is going to continue to seep into all aspects of commercial life, both in the U.S. and across the globe.

Even before inflation rates started to rise drastically, we were dealing with a used car and a new car shortage. This then increased the price of vehicles being sold. There were a number of issues feeding into this, namely the shortages of the semiconductor chip and extreme supply chain problems.

Now, it looks like the price really isn’t going down anytime soon. For example, Tesla just hiked its prices on all its electric vehicles in the U.S. Then, in China, the Model 3 and Model Y cars saw an increase. According to CNBC, this is actually the second increase just within this last week for Tesla.

At a Glance

  • Tesla is increasing the price of all car models in the U.S. as well as the Model 3 and Model Y cars in China
  • Elon Musk mentioned the pressures of inflation on the company in a recent tweet
  • A part of the increase is due to rising nickel prices, which is a key material used to make the electric batteries
  • The Model X gets the biggest price increase of $10,000, which makes the car a total $114,990

Tesla Inflation, Elon Musk Response

This price increase is happening right after CEO Elon Musk warned consumers of the kind of inflation pressure that was happening to his business.

At this time, the company is not giving any specific reasons for its price increases. All we have to go off are tweets from Musk talking about these impending inflation pressures. He wrote, “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics.”

One of the key materials Tesla is seeing a shortage of is nickel. This is one of the key ingredients the company uses to make its electric batteries and the price has skyrocketed.

So, what price are we looking at now?

According to Electrek, the Model 3 starts at $46,990, which is a $2,000 increase. The Model 3 Dual Motor All-Wheel Drive is now $54,490, which is $2,500 more than before. The Performance version is set at $61,990, which is $3,000 more.

The Model Y starts at $62,990, which is a $2,000 increase. The Model S is seeing one of the most significant increases. The company tacked on $5,000 to both, which means you’re looking at a $99,990 price tag for both. The Model X, however, gets the biggest price jump. This electric car is getting priced at $114,990, which is $10,000 more than before.

Uber and Lyft New Charges

Tesla is not the only company in the automotive world having to financially structure differently to make sure profit stays acceptable.

Uber and Lyft, the most popular ride-share companies, are now adding a temporary surcharge to their services to account for the rise in gas prices across the nation. According to NPR, Lyft said that the company is even calling it a fuel surcharge and the money is going directly to drivers.

“We’ve been closely monitoring rising gas prices and their impact on our driver community,” a spokesperson told the news outlet. Uber is doing the same thing for Uber trips and Uber Eats orders for at least the next 60 days.