Tesla has increased the prices of its electric vehicles in the US and China between three and five percent after Elon Musk tweeted about inflation pressures affecting the company.
This is the second time Tesla has raised its prices over the past week, with a first price bump implemented on some long-range models on Wednesday. However, the Verge notes that this new price bump is not only more substantial than last week’s, but it also applies to every vehicle Tesla sells.
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The price increase comes after Musk publicly noted Tesla’s issues on Twitter. On Sunday, Musk asked Twitter users for their thoughts on the “probable inflation rate over next few years,” prompting people like Mark Cuban to respond. On the same Twitter thread, Musk added that both Tesla and SpaceX were seeing inflation issues in raw materials and logistics.
Tesla & SpaceX are seeing significant recent inflationary pressure in raw materials & logistics
– Elon Musk (@elonmusk) March 14, 2022
There are several reasons for the inflation pressures. Companies have been battling a semiconductor chip shortage since the onset of the pandemic, and Russia’s invasion of Ukraine has disrupted the global supply chain.
According to Reuters, Wells Fargo analysts found that prices of nickel, an element used in batteries, were up 130%, while cobalt, lithium and aluminum prices increased anywhere from 16 to 88 percent this year.
As of Tuesday morning, Tesla stock has increased by 3.29% over a 24-hour period.
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