Leading United Sates based electric vehicle manufacturer Tesla Inc. (TSLA) has hiked prices of U.S-China made Model 3 and Model Y cars. Citing updated information from the company’s website, U.S made Model Y SUVs and Model 3 Long Range sedans have each been raised by $1,000.
The China made Model 3 and Model Y have also been hiked by 10,000 yuan ($1,582.40) each. This move comes at a time when the cost of raw materials in the automotive industry has been continuously surging.
If this condition keeps on going on, coupled with the global chip shortage then it’s evident that that price of electric vehicles will keep on going north making it hard for EV makers to produce affordable EVs.
“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,” says Gregory Miller, a senior industry analyst at Benchmark Mineral Intelligence.
Since January last year, the price of U.S made Model Y Long Range has increased by 20%, similarly, at the same time frame, the price of Model 3 Long Range sedan has also increased by 10.6%.