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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.

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Comment59

  • WayneLee
    ·2021-06-01
    Bad news for Tesla?
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  • bzlim
    ·2021-06-01
    More downside for tesla again. 
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    • 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.
      2021-06-01
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    • GabbieTeo
      Why is it a downside? Is not it Good? It wIll increase their margin...
      2021-06-01
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  • 超群yibo
    ·2021-06-01
    EXPECTED
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  • Kuanwei
    ·2021-06-01
    [驚訝] 
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    • Nienz
      Commented!
      2021-06-01
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    • Nienz
      Cool!
      2021-06-01
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    • Kuanwei
      comment
      2021-06-01
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  • Chris68
    ·2021-06-01
    Inevitably, if all EV makers are also increasing their price, then there should not be impacted right?Please share your thoughts? Thanks 
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  • All in Tesla
    ·2021-06-01
    When Tesla grows it will be so big and no competition. It has proven in the last few yrs
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  • JLCH
    ·2021-06-01
    .
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    • JLCH
      .
      2021-06-01
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  • Juvie
    ·2021-06-01
    oh man
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  • Jetblackeyes
    ·2021-06-01
    Wow like my comment pls @yvneyng
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    • yvneyng
      Ooooo
      2021-06-01
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  • Ipodshuttle
    ·2021-06-01
    Oh no
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  • Fatboy79
    ·2021-06-01
    I’m expecting Japanese to catch up in no time. Japan auto king. 
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  • Aerith
    ·2021-06-01
    I expect short term price weakness but long term is bullish
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    • Gunners80
      nice
      2021-06-01
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    • Fanshuu
      Interesting observation. Why may i ask?
      2021-06-01
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  • meowboss
    ·2021-06-01
    Ple like here
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    • meowboss
      meow
      2021-06-02
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  • Hodl
    ·2021-06-01
    Like and comment please 
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    • dh0904
      please comment back to mine! :) thank you
      2021-06-01
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    • Gunners80
      liked
      2021-06-01
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  • Lancelotz
    ·2021-06-01
    Good
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  • Gamestonk
    ·2021-06-01
    In Elon we trust
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    • Gamestonk
      Lol oops
      2021-06-01
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    • Fatboy79
      I thrust not trust
      2021-06-01
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  • MasterStonker
    ·2021-06-01
    Keep talking crypto lar 
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  • Albaakbert
    ·2021-06-01
    Good move 
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  • Venus888
    ·2021-06-01
    Ok. Pls like & comment. Thanks
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    • Venus888
      ok
      2021-06-01
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    • Gamestonk
      ?
      2021-06-01
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    • jiaxinn
      Like and comment pls
      2021-06-01
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    View more 1 comments
  • Brrrrrrrrrrr
    ·2021-06-01
    Folks, please think before you start selling. Price increase, more cash inflow, smaller deficit, bettercash balance, better debt ratio... 
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    • bzlim
      That's under the assumption all else remain equal. But the reason for the price increase is due to cost price increase so it affects profits. And increase in price may reduce buyers. Hence net loss
      2021-06-01
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