Elon Musk blames ‘supply chain price pressure’ for Tesla’s price increase

by Krish Karthik

Tesla CEO Elon Musk blamed supply chain pricing pressure for the gradual price increases the company has made to its Model 3 and Model Y vehicles in recent months. “Prices are rising due to major supply chain pricing pressure across the industry,” the CEO tweeted in response to a complaint about the changes. “Raw materials above all. “Today, the CEO followed up saying that “microcontroller chips” are a particular challenge right now. But although Musk said he had “never seen anything like it,” he added that he didn’t expect it to be a long-term problem. “The fear of running out drives every business over-ordering – like the toilet paper shortage, but on an epic scale. “Musk previously indicated on an April earnings call that Tesla was well positioned to deal with the global chip shortage by “pivoting extremely quickly to new microcontrollers”.

Electrek Has Followed Tesla’s prices have changed in recent months. The Standard Range Plus version of the Model 3 went from $ 36,990 in February to $ 39,990 at the end of May , for example, while the Model Y Long Range AWD version went from $ 49,990 to $ 51,990 during the same. period. Tesla has updated its prices almost half a dozen times since February of this year.

Tesla is far from unique in seeing its prices affected by the global chip shortage, which has had a huge impact on the manufacturing of everything from game consoles to toasters . Automakers have been hit particularly hard by the shortage and have had to temporarily shut down production lines even as demand for new cars and trucks grows.

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