Tesla is Increasing Vehicle Prices as Materials Shortage Worsens

Tesla is increasing the prices of its vehicles due to supply chain pressures across the auto industry.

"Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially," Elon Musk said on Monday, adding that the crisis is deeper in the case of raw materials.

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In May, Tesla increased its Model 3 and Model Y prices, the automaker's fifth incremental price increase for its vehicles in just a few months, the Electrek website reported.

During an an earnings conference call in April, Musk said Tesla had experienced "some of the most difficult supply chain challenges," citing a chip shortage. "We're mostly out of that particular problem," he added at the time.

Tesla Model X
A Tesla Model X's autopilot can be fooled with fake images on hacked billboard Wikimedia Commons

In response to the removal of lumbar support on the passenger side in Tesla's Model Y, Musk said, "Moving lumbar was removed only in front passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no usage. Not worth cost/mass for everyone when almost never used."

Earlier on Monday, the Electrek reported that new Tesla Model Y owners are reporting that their electric SUVs are being delivered without lumbar support on the passenger side.

This article was first published on June 1, 2021
Related topics : Elon musk