Tesla has announced that it raised the prices of all of its electric vehicles up to 10%. Now, the cheapest electric vehicle the company offers is the Model 3 Rear-Wheel Drive, with a starting price of $46,990, while the Model X Tri-motor, which is the company's top-end mode, now costs around $126,490 to $138,990.
The price increase announced on Mar.15 marks the second price increase that Tesla has implemented in a week, after the automaker increased the cost of its long-range models on Mar. 9.
However, this week's newest increase was more substantial than the increase last week, but it applies to every Tesla vehicle.
Tesla Increased Prices
The Model 3 Rear-Wheel Drive increased from $44,990 to $46,990, while the Model 3 Long Range increased from $51,990 to $54,490, according to The Verge.
The Model 3 Performance increased from $58,990 to $61,990. The Model Y Long Range increased from $59,990 to $62,990. The Model Y Performance increased from $64,990 to $67,990.
The Model S Dual Motor increased from $94,990 to $99,990. Meanwhile the Model S Tri Motor now costs $135,990 from $129,990, the Model X Dual Motor is now $135,990 from $129,990, the Model X Dual Motor increased from $104,990 to $114,990 and the Model X Tri Motor increased from $126,490 to $138,990.
Tesla and its CEO Elon Musk have not released any statement about the latest price increases, but many factors have played a part in this decision.
On Mar. 14, Musk said that Tesla and SpaceX are now seeing the significant recent inflation pressure in raw materials and logistics.
Inflation is now up 7,.9% in the United States, caused by the increasing cost of services, food, and energy, while the prices of raw materials used by built electric vehicles like nickel, steel, and palladium, are soaring in price as an effect of Russia's invasion of Ukraine.
Although Tesla can benefit from the gas hike because it offers electric vehicles, the materials used in manufacturing these have increased their prices too.
High Gas Prices
According to CNBC, petroleum prices are at a 14-year high, and it is only getting higher daily. On Mar. 13, it was reported that the average cost of a gallon of gas is now $4.009. That is the highest price for gas since July 2008.
An increase in demand and a reduction in supply is increasing the prices at gas stations. With the recent increase, gas is now 40 cents more than just a week ago.
Patrick De Haan, the head of petroleum analysis at GasBuddy, said that there are a few words to describe the sudden rise in gasoline prices over the last week, with massive spikes across the United States in both gasoline and diesel prices, as oil prices jump to their highest since 2008.
Haan added that the $4 per gallon mark is only the beginning, and the country will soon set new all-time record highs, and there is a possibility that it will go up to $4.50. According to Reuters, the average price of gasoline may set a new all-time record within a day.
With the Russia-Ukraine war, suppliers fear that there will be severe supply shortages. According to the US Energy Information Administration, the cost of gasoline is based on the cost of oil.
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Written by Sophie Webster
