Tesla, an electric car manufacturer, is increasing the price of its vehicles in America due to rising logistics and raw materials costs.
Tesla's Model Y long-range car, which is a startup, now costs $65,990. This is up from $62,990 as Reuters first reported. Tesla also increased the prices of its Model 3, Model X, and Model S vehicles.
According to Electrek (a website that tracks electric cars), the Model 3 Long Range saw a $2,500 price hike, from $54,490 down to $57,990. Tesla raised the price of its Model S Dual Motor All-Wheel Drive Long Range vehicle from $54,490 to $104,990. The Model X is now $120,990
Tesla did not respond to our request for comment immediately.
Although the company didn't say why the prices have risen, inflation is on the rise and the cost of raw material used to make automobiles has increased automaker's costs. Elon Musk, Tesla CEO, stated earlier this month that he wants to reduce 10% of his workforce due to a "super bad feeling about the U.S. Economy."
As a result, consumers are finding it difficult to find new and used cars at all prices. Rising demand has outstripped supply. This is due to a shortage in key components for auto manufacturing.
According to government inflation data, prices for new cars rose 12.6% in May. The cost of used cars rose 16.1% last month, while prices for trucks and cars went up 12.6%. Edmunds reports that the average price of a new car was $721 higher than its average list price, $45,914, last month. Comparatively, the average discount for a new car in December 2019, just before the pandemic, was $3,027.
