Will the prices of Tesla models keep going up?
Tesla has raised the prices of its vehicles in the U.S and China. The adjustments affected the company’s entire vehicle lineup, from the base Model 3 to the top-tier Model X Plaid. The cheapest Model 3 now sells for $46,990 following a price hike this month, making the entry-level Model 3 34% more expensive than it was three years ago.
Tesla CEO Elon Musk said on Twitter shortly before the latest price hikes, that Tesla was "seeing significant recent inflation pressure in raw materials and logistics."
It is not just crude oil and gas prices that have soared as a result of the Russian invasion of Ukraine. Nickel has also seen a real price rally in the last two weeks. The metal needed for lithium-ion batteries in electric cars was sometimes trading for more than $100,000 a ton.The price of the raw material had risen 50 percent on March 8 alone. It had even tripled at its peak.
The value of the metal has increased significantly overall since last year because it will play a significant role as one of the most important ingredients in promising electricity storage systems in electric mobility and throughout the energy transition.
Though the price of Tesla vehicles are going through the roof, the automaker has managed to reduce the price of the Wall Connector, one of its most popular products. Now Tesla is dropping the price back down to $495 in an update to its online shop.
Looking at the big picture, Tesla’s average transaction price increased by 14.8 percent from February 2021 to February 2022. However, the average annual increase in the industry is 11.4 percent.