Tesla increases EV prices in China and the U.S.

On Tuesday, Tesla Inc. raised the prices of its electric vehicles in China and the United States, the second increase in less than a week.

Subsequently, the Chinese Model Y Long-Range vehicle now costs $58,952.68. It added $2,822.60 from its March 10 value, when its price went up by $1,568.16.

Likewise, the price tag of the Model 3 Performance unit in Beijing came at $57,694.41 after the latest hike of $2,822.78.

Then, the leading EV maker raised prices for all its U.S. units following a raise of $1,000.00 last week.

Its cheapest electric car, Model 3 Rear-Wheel Drive, jumped by $2,000.00 to $46,990.00.

Similarly, the Model 3 Dual-Motor All-Wheel Drive edged up by $2,500.00 to $54,500.00. Its Performance version also received a significant $3,000.00 rise to $61,990.00.

As for the Model Y, Tesla elevated the base price by $2,000.00 to $62,990.00. The Performance type of the electric SUV expanded by $3,000.00 to $67,990.00.

Accordingly, the hefty price increases throughout the lineup apply only to new orders today and going forward.

The automotive maker also released a delivery timeline of at least a few months up to the end of the year for the cheapest versions.

Correspondingly, the hike came as raw materials prices soared, worsened by the ongoing Russia-Ukraine crisis.

Moscow’s invasion led to a surge in metals used in cars. For instance, automakers utilize aluminum in the vehicle’s bodywork.

Additionally, palladium is for catalytic converters and high-grade nickel for electric vehicle batteries. In the stated case, customers are likely to foot the bill.

Meanwhile, Rivian Automotive warned it would cut its planned production in half. Then, Toyota Motor announced to scale back production due to supply-chain issues.

Tesla amid Russia-Ukraine war

Since 2020, Tesla has built supply chain ties to Russia. For example, the company has purchased millions of euros worth of aluminum from Rusal.

The world’s second-largest aluminum company once received a sanction from the U.S. Treasury but lifted it in 2019.

Tesla bought Rusal aluminum for casting parts at its new vehicle assembly plant outside Berlin, Germany.

However, the Kremlin’s aggression has thrown supplier relationships into question. But, then, the mounting raw material prices may play into these decisions.

On Monday, Tesla CEO Elon Musk said the company faces significant inflationary pressures.

Adding to the constraints, U.S. President Joe Biden urged Congress to suspend normal trade relations with Russia.

This potential sanction could make Moscow metals prohibitively expensive for American companies.

Nevertheless, Tesla forecasts a massive surge in orders amid the higher interest in electric cars due to the climb in gas prices.