Elon Musk Says Tesla Price Rises Due To Supply Chain Disruptions
- Prices for some Tesla models are rising due to supply chain issues, CEO Elon Musk said.
- Tesla earlier this month hiked prices for its Model 3s and Ys.
- The global auto industry has been hit hard by supply chain issues, including a shortage of computer chips.
- See more stories on the Insider business page.
Prices for some Tesla models are rising due to disruptions in the global supply chain in the auto industry, especially for raw materials, Elon Musk said on Twitter on Monday.
Musk’s explanation came in response to a Twitter user who said he didn’t like the “direction” the company was going in by “raising vehicle prices but removing features like lumbar support. for the Y model. “
The CEO of Tesla and SpaceX responded, “Prices are rising due to industry-wide supply chain pricing pressure. Raw materials in particular.”
—Elon Musk (@elonmusk) May 31, 2021
Tesla earlier this month raised prices for its Model 3s and Ys, Electrek reported. It was the fifth price increase on models in a few months.
The global auto industry has been hit hard by supply chain issues, including a shortage of computer chips, due to the COVID-19 pandemic.
The semiconductor shortage is expected to cost the global auto industry $ 110 billion in 2021. Automakers, including Ford and GM, have cut their profit forecasts by billions of dollars.
Tesla has not been immune to the effects of the shortage. During the electric car company’s earnings call last month, Musk said supply chain issues were causing “insane hardship” and the chip shortage had impacted manufacturing goals. from Tesla. Musk recently tweeted that the delivery date for Tesla’s Model S Plaid, the automaker’s fastest vehicle, has been pushed back a week to June 10.
Tesla is now in talks to prepay supplies for the computer chips, the Financial Times reported. Musk has also expressed interest in vertical integration. Last year, the company announced plans to manufacture its own battery cells and even purchased land in Nevada to mine its own battery-grade lithium.