Jun 16, 2022 - Energy & Environment

Tesla raises prices again on its electric cars

Tesla car

Tesla is raising the prices for all of its vehicles. Photo: Patrick T. Fallon/AFP via Getty Images

Tesla is once again raising the prices of its electric vehicles amid record inflation and rising material costs.

Driving the news: For some models, the price hikes are the fourth of the year, Reuters reported Thursday citing information from brokerage Credit Suisse.

  • Tesla officials, including CEO Elon Musk, spoke of material cost and price increases in April during the company's quarterly earnings call with analysts.
  • Musk said some suppliers have requested increases from 20 to 30% for parts from last year to the end of this year.

Tesla price increases

Details: The increase on some models is as high as $6,000, according to Electrek, which has been tracking the price increases.

  • The automaker raised the price of its long-range Model Y by approximately 5% to $65,990.
  • The Model 3 base cost increased by $2,000 to $57,990.
  • The Model S increased by $5,000 to $104,990.

What they're saying: “Actually on the price increase front, I should mention that it may seem like maybe we’re being unreasonable about increasing the prices of our vehicles, given that we had record profitability this quarter,” Musk said in April.

  • “But the wait list for our vehicles is quite long. And some of the vehicles that people will order, the wait list extends into next year.
  • “So our prices of vehicles ordered now are really anticipating a supplier and logistics cost growth that we’re aware of and believe will happen over the next six to 12 months,” Musk said.

Tesla staff cuts

Flashback: Earlier in June, Musk reportedly said in an internal memo to staff this week that he is prepared to cut staff by about 10%, citing a "super bad feeling" about the economy.

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