Musk says Tesla prices increasing due to supply chain pressure

Automotive Industry

Source: Automotive News Europe, 2021-06-01

The price of Tesla vehicles is increasing due to supply chain pressures across the auto industry, particularly for raw materials, Elon Musk said on 31 May in response to a tweet.

"Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially," Musk said in the 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 2021, 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 earnings conference call in April 2021, 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 the 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."

The Electrek reported on 31 May that new Tesla Model Y owners are reporting that their electric SUVs are being delivered without lumbar support on the passenger side.


back to ECG news