A significant increase in the prices of Tesla's electric cars was observed. According to Electrek, the car company boosted prices of its EV across its entire lineup. Some models gone up by as much as $6,000.
The long-range versions is the model most affected. For instance, Model X AWD Long Range jumped from $114,990 to $120,990.
The price increase is the latest of the price hikes for EVs of Tesla this year. In March 2022, it had a major price increase. It was followed by a smaller one on long-range vehicles in April. In 2021, there has been a series of increasing prices every month.
How Much is the Increase for Each Model?
Of all Tesla's lineup, the one that got the smallest price increase is the Model 3 Long Range with a $2,500 up in price from $54,490 to $57,990.
Both versions of Tesla's most popular model, the Model Y, has gained a bigger price increase. From $62,990, Model Y Long Range went to $65,990. Meanwhile, Model Y Performance went from $67,990 to $69,990.
Model Y Standard Range is now being sold by Tesla. The new version was built in Texas, and at present it is only available to local Model Y buyers in Texas through invitation basis only. Tesla is not yet selling it through its online configurator.
There is also a significant price increase in Tesla Model S. This is after a big $5,000 price increase just a few months ago, according to Electreck. From $99,990, the Model S Dual Motor All-Wheel Drive Long Range went to $104,990. The Plaid version of the Model S retains its $135,990 price.
Just like the Model S that had a significant price increase earlier this year, the Model X's price increased again. With the price increase today, the Model X Dual Motor All-Wheel Drive Long Range went from $114,990 to $120,990. That's a big leap of $6,000 for the electric SUV. Meanwhile, Model X Plaid remains at $138,990 price for now.
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What's the Reason Behind the Increase in Prices?
There is no explanation from Tesla for the increase in prices. However, like the increase in prices of other automakers, there's a possibility that it is due to the combination of inflation, supply chain issues and slowed production in China, according to TechCrunch.
There are other EV manufacturers, such as Rivian and Lucid, that have also increased the prices of their vehicles recently.
During Tesla's first quarter earnings call in April, "CEO Elon Musk said he thought inflation was worse than reported and likely to last all of 2022," as per TechCrunch. He also added that future production could be hampered by global commodities supply constraints.
Electreck reported that according to the online configurator, "Tesla has a significant backlog of orders with new orders for several of those models only being delivered 6 to 12 months from now."
It is possible that Tesla is trying to predict price increases for the time that the company will be producing those vehicles, which is 6 to 12 months from now.
Last week, it was reported that Musk could possibly reduce Tesla's workforce due to high inflation.
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