Technology

Tesla is raising the price of its electric vehicles for the second time in less than a week


Tesla raised its prices in China and the U.S. in less than a week for the second time, CEO Elon Musk said the U.S. electric car maker was under heavy inflationary pressure on raw materials and logistics.

As rising commodity costs rise, supply chain disruptions intensified after Russia invaded Ukraine.

Prices for metals used in cars have risen, including aluminum used in the body, palladium used in catalysts and nickel and lithium to power electric vehicle (EV) batteries.

The costs have raised concerns about EV’s economy, as carmakers and startups are still preparing to launch new cars behind a long supply of semiconductors that is hitting production at companies like Toyota and Volkswagen.

Tesla, which has a diversified supply chain, has bought “millions of euros of aluminum” from Russian aluminum giant Rusal, CNBC reported on Monday, citing internal documents.

Britain’s millionaire founder Oleg Deripaska has been punished by Britain.

Tesla bought Rusal aluminum parts for its new foundry vehicle assembly plant outside of Berlin, for Tesla Model Y, among others, according to CNBC.

Tesla received a conditional approval of its 5,000 billion euros (roughly Rs 42,075 million) for the German gigapower factory earlier this month, after a month’s delay.

Tesla and Rusal did not immediately respond to emails requesting comments.

“Tesla and SpaceX have been seeing significant inflationary pressure in raw materials and logistics lately,” Musk said Monday, referring to his rocket company. “And we’re not alone,” he said.

Tesla on Tuesday raised the price of all U.S. models by 5-10 percent, according to its website. In China, the price of some Model 3 and Y products in China rose by about 5 percent.

Last week, the company raised the prices of US Model Y SUVs and Model 3 Long Range sedans and some Model 3 and Y vehicles made in China.

© Thomson Reuters 2022




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