Tesla Model 3, Model Y Prices Hiked in US, China Amid Surging Cost of Raw Materials

Tesla increased prices for the most affordable versions of Model 3 and Model Y about a dozen times last year in the US.

By Reuters | Updated: 10 March 2022 12:03 IST

Tesla Model 3, Model Y Prices Hiked in US, China Amid Surging Cost of Raw Materials

Photo Credit: Twitter

Tesla cars' price hike is attributed to surging raw material costs

Highlights

Tesla increased car prices about a dozen times last year
Price rise due to Russia's invasion of Ukraine
Rising prices hampering the broader adoption of the technology

Electric-car maker Tesla on Wednesday raised prices of its US Model Y SUVs and Model 3 Long Range sedans by $1,000 (roughly Rs. 76,000) each and some China-made Model 3 and Model Y vehicles by CNY 10,000 (roughly Rs. 1,20,300), according to its website.

The company increased prices for the most affordable versions of Model 3 and Model Y about a dozen times last year in the US, according to data tracked by Reuters.

The US price of the EV maker's Model Y Long Range car has jumped 20 percent from January 2021, along with a 10.6 percent hike for its Model 3 Long Range sedan during the same period.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

The move comes amid surging raw material costs, made worse by Russia's invasion of Ukraine, and could set back the dream of Tesla Chief Executive Elon Musk and other auto executives to roll out more affordable electric vehicles.

Rising prices of nickel, lithium and other materials threaten to slow and even temporarily reverse the long-term trend of falling costs of batteries — the most expensive part of EVs — hampering the broader adoption of the technology, said Gregory Miller, an analyst at industry forecaster Benchmark Mineral Intelligence.

© Thomson Reuters 2022

Elon Musk Seeks to End US SEC Muzzle on Tweets, Could Face Uphill Battle

This week on Orbital, the Gadgets 360 podcast, we dive into Apple's Peek Performance event. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.