CEO Elon Musk has finally provided an explanation as to why his company, Tesla, keeps raising the prices of the Model 3 and Model Y.
From the beginning of the year, Tesla adopted a strange pricing strategy that puzzled people following the automaker.
Although the Californian company has not been immune to frequent price changes over the years, the company clearly increased them in 2021 with seven increases on the Model 3 and Model Y in just a few months.
The price changes were small and incremental, but they were significant when making the final sum.
The Model 3 Standard Range Plus, Tesla’s cheapest vehicle, increased in price from a low of $ 37,000 in February to $ 40,000, an increase of more than 8% in price.
Just a few months ago, the AWD long-range Model Y was selling for less than $ 50,000, and now it starts at $ 52,000.
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Now, Elon Musk has commented on the issue for the first time after someone on Twitter complained that Tesla raised prices while removing features such as radar and front passenger lumbar support.
The CEO blamed “huge pressure” on industry-wide supply chain pricing, although he did not specify which particular raw materials are affecting Tesla’s prices.
According to graphs and statistics, the price of copper has doubled in price since the beginning of the pandemic, as have other essential materials for the automotive industry, such as steel and aluminum.
For that reason, Tesla is now being commented on in the industry for significant cost increases and is passing the cost on to consumers through recent price increases.
Written by | Gabriel Sayago