- Tesla hiked the prices of its electric vehicles in the U.S. and China after CEO Elon Musk warned of inflation pressure on the business.
- Materials such as nickel, a key component of electric vehicle batteries, are on the rise.
- The company has raised the prices of all of its models in the U.S. In China, a version of the Model 3 and the Model Y have seen price hikes. It is the second increase within the last week.
The company raised the prices of all its models in the U.S. In China, a version of the Model 3 and the Model Y saw price hikes. It is the second increase within the last week.
Tesla did not give a reason 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 recent inflation pressure in raw materials & logistics."
Materials such as nickel, a key component of electric vehicle batteries, are on the rise.
Meanwhile, a flare-up of Covid cases in China and lockdowns in some cities have added a further challenge to already-stretched supply chains. Critical components like semiconductors also remain in short supply.
On Tuesday, Tesla's China website listed the starting price of the Model 3 Performance at 367,900 yuan ($57,648). The South China Morning Post reported on Mar. 10 the price was 349,900 yuan after a previous increase that day.
The Model Y Long Range in China now costs 375,900 yuan — up from the previous price of 357,900 yuan. The Model Y Performance is currently priced at 417,900 yuan, up from 397,900 yuan previously.