Tesla raised prices in China and the US for the second time in less than a week after Elon Musk, chief executive, said the US electric carmaker faced huge inflationary pressures in raw materials and logistics.
The price increase comes as raw material costs are soaring, a trend exacerbated by supply chain disruptions following Russia’s invasion of Ukraine.
The price of metals used in cars has soared, including aluminum for the body, palladium for catalytic converters, and nickel and lithium to power electric vehicle (EV) batteries.
These costs have raised concerns about the economics of electric vehicles as traditional carmakers and start-ups prepare to launch new cars on the back of a long crunch in the supply of semiconductors, which is still hitting production by companies such as Toyota (7203.T) and Volkswagen.
Tesla, who has a diversified supply chain, has bought “millions of euros worth of aluminum” from Russian aluminum giant Rusal, CNBC reported on Monday, citing internal documents.
CNBC said Tesla bought Russian aluminum castings for models such as Tesla’s Model Y at his new car assembly plant on the outskirts of Berlin.
Earlier this month, Tesla’s giant 5 billion euro ($5.5 billion) factory in Germany received conditional approval after months of delay.
Tesla and Rusal did not immediately respond to emails seeking comment.
Tesla and SpaceX have recently faced huge inflationary pressures in raw materials and logistics, Musk wrote on Twitter on Monday. He was referring to his rocket company. ”We are not alone,” he said.
All Tesla models in the US raised prices by 5 per cent by 10 per cent on Tuesday, according to Tesla’s website. In China, it has raised the price of some Chinese-made Model 3 and Model Y products by about 5 per cent.
The week before last week, the company raised prices for its American Model Y SUV and Model 3 long-distance sedans, as well as some Chinese-made Model 3 and Model Y cars.
Post time: May-06-2022