Prices for used Teslas jump 6% in just two weeks

Tesla electric vehicles can move fast, but prices can move even faster.

The cost of a used Tesla has risen about 6 percent in just the past two weeks, to about $ 65,000 on March 20, according to CoPilot, which tracks car dealership prices nationwide. The newest used models, those between one and three years old, have an average of about $ 70,000, CoPilot also reported.

Old Tesla price increases occur as new Tesla prices have also risen. And the average price of all used cars (gas and electric) has risen an impressive 41% last year. approximately $ 29,000according to Edmunds.

Tesla quietly raised the price of its new vehicles earlier this month by thousands of dollars after CEO Elon Musk tweeted that the company “is seeing significant recent inflationary pressure on commodities and logistics.” Tesla’s Model X now costs $ 114,900, a jump of more than $ 10,000. The price of the Model S has risen by $ 5,000 to $ 99,990; the price of the Model 3 Performance increased by $ 3,000 to $ 61,990; and the price of the Model Y increased by $ 4,000, to $ 62,990.

Across the company, Tesla’s most recent price hikes are between 3% and 5% in the U.S. and China, Credit Suisse analyst Dan Levy said in a research note.

Aluminum, nickel, and palladium are all of the raw materials Tesla uses to build its vehicles. Aluminum, nickel and palladium help make catalytic converters, air conditioners and other essential parts of the car. Nickel is used to make batteries found in Tesla’s Model Y.

Price increases are unlikely to torpedo the demand for Tesla vehicles, Sam Fiorani of AutoForecast Solutions told Yahoo Finance. This is partly because Tesla is the world’s largest producer of electric vehicles with a market value of $ 1 trillion.

Rapidly rising gasoline prices are clearly raising interest in buying an electric or hybrid car, said CoPilot CEO Pat Ryan. And Tesla’s rising prices are, in a way, just a byproduct of the demand for electric vehicles, he said.

“Prices are hovering around $ 65,000 and supply has dropped to an all-time low, making it much more difficult for consumers to market an electric vehicle,” Ryan told CBS MoneyWatch. “Overall, the market has become increasingly competitive for people who want to become a consumer of gas.”

Automotive industry experts say it is important to monitor the price of electric vehicles as the US tries to reduce its dependence on fossil fuels and gas cars. Charging stations are popping up across the country to encourage consumers to buy electric cars, but price hikes like Tesla’s could put those vehicles out of the reach of the middle class, experts say.