Tesla raises car prices in US and China after Musk inflation warning
Tesla raises car prices in US and China after Musk inflation warning

Tesla raises car prices in US and China after Musk inflation warning

Tesla CEO Elon Musk speaks at a delivery ceremony for the Tesla China-made Model 3 in Shanghai, eastern China, on January 7, 2020.

Ding Ting | Xinhua News Agency | Getty Images

Tesla has raised the prices of its electric cars in the US and China after CEO Elon Musk warned of inflationary pressures on the company.

The company raised the prices of all its models in the United States. In China, a version of Model 3 and Model Y saw price increases. It is second increase within the last week.

Tesla did not provide a justification for the increases. The company was not immediately available for comment when contacted by CNBC.

But Musk said in a tweet earlier this week that Tesla and his space exploration company SpaceX have seen “significant inflationary pressures in raw materials and logistics recently.”

Materials such as nickel, a key component in electric car batteries, is in progress.

Meanwhile, a the flare-up of Covid cases in China and lockdowns in some cities have added one further challenge to already stretched supply chains. Critical components such as semiconductors are also in short supply.

On Tuesday, Tesla’s Chinese website announced the starting price of the Model 3 Performance at 367,900 yuan ($ 57,648). The South China Morning Post reported on March 10 that the price was 349,900 yuan after an earlier rise that day.

The Model Y Long Range in China now costs 375,900 yuan – up from the previous price of 357,900 yuan. Model Y Performance is currently priced at 417,900 yuan, up from the previous 397,900 yuan.

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