Tesla Caves in to Rising Material Costs, Raises Prices Globally

onlyusedtesla
2023-05-02

Tesla is responding to increasing supply costs by raising prices on Model 3 and Model Y in several key markets.

All Model 3 and Model Y configurations have simultaneously had their pricing increased by $250 on Tesla’s U.S. site as of 3am EST Tuesday morning.

This makes the most affordable Model 3 Rear-Wheel Drive configuration $40,240 as compared to $39,990, and similarly raises the starting price of Model Y All-Wheel Drive to $47,240 from $46,990.

Model S and Model S Plaid were unaffected at starting price points of $87,490 and $107,490 respectively. Model X and its Plaid configuration were also unaffected, remaining at $97,490 and $107,490.

The price increase affects North America, China, Canada, and Japan.

Real Talk

Our impression is that Tesla has to succumb to rising material costs, in this case prioritizing margin over sales volumes.

While the automaker has strategic deals in place for its batteries, lithium and nickel have seen volatile pricing. Other aspects of the complex supply chains may also be affected.

Tesla could theoretically sell vehicles with minimal-to-no profit margins then recoup margins down the line with Full Self-Driving, although the automaker is apparently still focused on maintaining gross margins.

This isn’t the first time that Tesla has issued a mostly insignificant price increase, although this is the most far-reaching of its kind to date.

__________________

Interested in Listing or Upgrading YOUR Tesla? The BEST place to get TOP dollar for your used Tesla. MADE IN NYC

Browse the listings now: Only Used Tesla

Buy or list your premium electric vehicle: OnlyEV

Or feel free to contact us directly at contact@onlyusedtesla.com today!

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

Leave a comment
11
1