Tesla added $1,000 for the price increase in the long-range versions of Model Y and Model 3, according to the latest report. The decision from the automaker came amid the surging prices of nickel worldwide.
Tesla Car Price Update 2022
Last year, we witnessed that the EV maker has made a series of price changes for its specific car models. This 2022, we are expecting this trend to continue especially that the supply chain issues are still affecting the global market.
According to a report by Electrek on Wednesday, March 9, the California-based clean energy firm was putting the blame on the price increase because of the ongoing supply chain problems which initially started at the peak of the COVID-19 pandemic.
On the other hand, it's important to consider that the gross margins of the company surged this year. This means that the automaker could still rake a "reasonable" profit on sales regardless of the situation.
Just a quick throwback in 2021, Tesla implemented a price hike for both Model Y and Model 3 cars in October. This was the second time that it increased the pricing for the said EV models.
At that time, the electric vehicle company added $2,000 for the price of the Tesla Model 3. The Standard Range Plus was sitting at $43,990 while the Long Range AWD cost $49,990. There's no recorded change for the Model 3 Performance which retained its value at $57,990.
However, the March 2022 update has shocked some buyers considering that successive price changes took place a few months ago.
Related Article: Tesla Model 3 and Model Y Price Update: Lowered Price Will Now Start Below $37,000!
Tesla Model 3 and Model Y Long-Range Prices
In a similar report from Electrek, the original pricing for the Model 3 Long Range was $50,990. Now, if you're planning to buy this you need to add $1,000 ($51,990).
Over the past year, there was a dramatic increase of about $4,000 for this model. As for the Tesla Model Y, an additional $1,000 is added to the current pricing for the Performance and Long-Range edition.
Speaking of nickel price, the Russia-Ukraine issue has been afflicting some damage to the economies of many countries. The EV companies are affected by the conflict since they rely mostly on nickel for the production of car batteries.
Although it's not confirmed if the nickel price increase is the reason behind the Tesla car price hike, we could see some connection between them.
Electric Vehicles Popularity to Continue
In another report from The Street, it was projected that the EV industry will bloom in the succeeding years. The article noted that by 2030, many electric vehicles will be produced, citing their 60% penetration to the market.
At that time, Tesla will still be on the list of the most valuable EV firms in the world. A bold prediction from an expert noted that Elon Musk's business will "explode" in the future.
It was indicated there that the EV industry will be able to distribute 85 million units yearly. 10 million out of these numbers belong to Tesla.
For the latest news, Tech Times reported that Tesla's EV sales in China exceeded over 200% last month.
This article is owned by Tech Times
Written by Joseph Henry
