Tesla's vehicle price increases due to supply chain pressure, Musk says

Reuters2021-06-01

May 31 (Reuters) - The price of Tesla vehicles is increasing due to supply chain pressures across the auto industry, particularly for raw materials, Elon Musk said on Monday in response to a tweet

"Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially," Musk said in a tweet.

He was responding to an unverified Twitter account called @Ryanth3nerd, which said, "I really don't like the direction @tesla is going raising prices of vehicles but removing features like lumbar for the Model Y..."

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.

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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • WayneLee
    2021-06-01
    WayneLee
    Bad news for Tesla?
  • bzlim
    2021-06-01
    bzlim
    More downside for tesla again. 
    • bzlim
      They article clearly states the increase in price is due to supply chain price pressure. Hence its cost also increases. So your margin remains the same and may lose a few customer because of the hike.
    • GabbieTeo
      Why is it a downside? Is not it Good? It wIll increase their margin...
  • 超群yibo
    2021-06-01
    超群yibo
    EXPECTED
  • Kuanwei
    2021-06-01
    Kuanwei
    [驚訝] 
  • Chris68
    2021-06-01
    Chris68
    Inevitably, if all EV makers are also increasing their price, then there should not be impacted right?Please share your thoughts? Thanks 
  • All in Tesla
    2021-06-01
    All in Tesla
    When Tesla grows it will be so big and no competition. It has proven in the last few yrs
Leave a comment
59