Inflation continues to spoil the fun as Tesla is increasing the prices of several car models yet again.
Electric vehicle (EV) news site Electrek caught wind of the price hike that is affecting the Model Y, Model 3, Model S, and Model X lines. As it currently stands, the Model X Dual Motor All-Wheel Drive Long Range saw the biggest increase from $114,990 to $120,990; that’s a $6,000 difference. The Model S Dual Motor All-Wheel Drive Long Range rose $5,000, going from $99,990 to $104,990.
For the popular Model Y line, two cars were affected. The Model Y Long Range is now $65,990, up $3,000 from its previous price of $62,990. The Model Y Performance went up $2,000 ($67,990 to now $69,990). And the final car is the Long Range Model 3 going from $54,490 to $57,990 – a $2,500 increase.
So far, Tesla hasn’t said why the company is increasing prices. We did reach out to them to see if they could explain, but, as of this writing, received no response.
Tesla price increases have become rather commonplace in the last couple of years. And you’ll see a pattern among the cars that are affected: It’s usually the Model Y and Model 3 lines. This makes sense since those two lines are among the most popular in Tesla’s lineup.
As an example, back in 2021 the Model Y and Model 3 went up in price by 20 percent and 23 percent, respectively. A little bit prior to that in October 2021, two Model 3 cars (the Standard Range Plus and Performance) went up in price, too. So what gives?
It can be argued that the price hike is because of supply chain problems. Even if the COVID-19 pandemic is starting to feel like a distant memory, the world is still dealing with issues in the global supply chain. Tesla CEO Elon Musk has complained about supply problems in the past, and as someone with intimate knowledge, he raises a good point.
Perhaps when things settle down, Tesla EVs will become cheaper.
Analysis: Business problems
While the supply chain is certainly a factor, you also can’t ignore Tesla's recent business troubles. According to Reuters, Musk wants to lay off 10 percent of Tesla salaried workers and pause hiring due to a potential looming economic recession. Then there's the whole debacle surrounding the Twitter acquisition.
It’s been almost two months since Musk announced his plan to acquire the social media platform with the deal currently on hold. And all that’s really come out of the Twitter deal is Tesla stock falling in value.
If you’re interested in electric vehicles, TechRadar recently wrote about EVs potentially being charged by the roads they drive on.
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