Tesla to charge more for cars in United States as inflation bites

Business 21:42 16 Jun, 2022

Automakers struggle to source chips and other supplies due to an industry-wide shortage

Tesla to charge more for cars in United States as inflation bites

Tesla Inc (TSLA.O) again raised prices for all its car models in the United States in response to persistent global supply-chain problems and soaring raw material costs.

The electric carmaker increased its Model Y long-range price to $65,990 from $62,990, its website showed on Thursday, after delaying the deliveries of some long-range models in the United States by up to a month, Qazet.az reports.

The 5% price hike comes as costs of raw materials of everything from aluminum to lithium used in cars and batteries surge, while automakers struggle to source chips and other supplies due to an industry-wide shortage.

Credit Suisse said the price hike represents in some cases the fourth one in the United States in 2022. "While some concerned price hikes will destroy demand, for now Tesla remains supply constrained," the brokerage said.

Tesla Chief Executive Elon Musk has previously said that lithium is responsible for cost increases and "a limiting factor" to EV growth, encouraging carmakers to get into the lithium business.