Tesla raises prices a second time in a few days due to rising costs

Beijing-Tesla raises prices in China and the United States for the second time in less than a week after CEO Elon Musk said US electric car makers are facing significant inflationary pressures on raw materials and logistics. ..

The increase is exacerbated by the disruption of the supply chain after Russia’s invasion of Ukraine and is caused by soaring raw material costs.

The prices of metals used in automobiles are skyrocketing, such as aluminum used in car bodies, palladium used in catalytic converters, and nickel and lithium to power electric vehicle (EV) batteries.

Costs are a concern for EV economics as traditional automakers and start-ups are preparing to launch new cars against the backdrop of a long semiconductor supply shortage that still overwhelms the production of companies such as Toyota and Volkswagen. Is causing.

Tesla received a € 5 billion ($ 5.5 billion) conditional go-ahead for the German Gigafactory earlier this month, after a few months delay.

“Tesla and SpaceX have recently been under heavy inflationary pressure on raw materials and logistics,” Musk wrote on Twitter on Monday, referring to his rocket company. “And we are not alone,” he said.

The website said Tesla raised prices for all US models by 5% to 10% on Tuesday. In China, we have raised the price of some Chinese Model 3 and Model Y products by about 5%.

Last week, the company raised prices for US Model Y SUVs and Model 3 long-range sedans, as well as some Chinese-made Model 3 and Model Y vehicles.

Sophie You and Brenda Go