Tesla hikes car prices by thousands of dollars as costs for raw materials soar

Tesla, the world’s largest producer of electric cars, has raised the price of its vehicles by thousands of dollars in the last two weeks the price of raw materials like metal has skyrocketed.

Listed prices for several new Tesla models rose on Tuesday, according to the company’s website, compared to March 1 prices. Tesla CEO Elon Musk has previously hinted at rising prices, saying in a statement tweet On Sunday, 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 performance price of the Model 3 at $ 3,000, up to $ 61,990; and the price of the Model Y for $ 4,000, up 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. While it is unclear exactly when the price hikes occurred, Reuters reported that Tesla has doubled its prices in just a few days. Tesla did not respond to a request for comment on price increases on Tuesday.

The costs of cars, both gas and electricity, are rising as inflation raises the price of everything from food and rent to clothes and appliances.

Consumer prices in February grew at an annual rate of 7.9%, said the U.S. Department of Labor last week: the fastest rate of inflation since 1982. But the average price of a new car has risen 12 percent from a year ago, the Department of Labor reports. A typical new car now costs $ 46,404, according to the Kelley Blue Book.

(The price of used cars has risen by an impressive 41% last year, as demand far exceeded supply. The average price of a used car is approximately $ 29,000according to Edmunds.)

Automotive industry experts predict that price increases for new vehicles will come shortly after seeing aluminum, nickel and palladium prices skyrocket in recent weeks as the invasion Russian government on February 24 seemed increasingly imminent. S&P Global Mobility analysts told CBS MoneyWatch they expect the price of a Mercedes EQS to rise to $ 11,000 due to higher metal prices.

Aluminum, nickel and palladium are used to make catalytic converters, air conditioners and other essential parts of the car. Nickel is used to make batteries found in Tesla’s Model Y, for example.

He Russia-Ukraine War metal prices are rising further as more and more US and European companies cut ties with Russian metal producers.