Tesla has increased the prices of its electric vehicles for the second time in less than a month. Following a $1,000 price increase on some long-range models last week, the automaker has now implemented a much larger price increase across its entire lineup.
According to Electrek, the base Model 3 now starts at $46,990, which is $2,000 more than before. The Model 3 Dual Motor All-Wheel Drive is now $2,500 more expensive at $54,490, and the Model 3 Performance is $3,000 more expensive at $61,990.
Meanwhile, the Long Range version of the Model Y now starts at $62,990, which is $2,000 more than before. Tesla has also increased the price of the Performance version by $3,000, making it $67,990 now.
Tesla has added $5,000 to both Model S options’ previous prices, so you’ll have to spend at least $99,990 for one. However, none of the other EVs received a price increase as significant as the Model X, which now costs $10,000 more at $114,990.
Although car manufacturing company quietly raised prices overnight, the move was not unexpected. Elon Musk, the company’s CEO, hinted at a price increase on Twitter.
Both Tesla and SpaceX, he claims, are experiencing “significant recent inflation pressure in raw materials [and] logistics.” He didn’t go into detail, but he linked to an article about commodity prices skyrocketing due to concerns about a shortage of raw materials exported by Russia.
Nickel is one of the materials impacted by Russia’s invasion of Ukraine, with prices skyrocketing and more than doubling since the war began. Russia is a major supplier of the metal, which is a key component of lithium-ion batteries used by Tesla and other electric vehicle manufacturers.
Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics
— Elon Musk (@elonmusk) March 14, 2022
Furthermore, Electrek reports that Tesla is experiencing a massive surge in new orders as a result of the increased interest in electric vehicles caused by the rise in gas prices.