Robert Besser
20 Jun 2022, 01:44 GMT+10
AUSTIN, Texas: Amidst ongoing global supply chain issues and surging raw material costs, Tesla has again raised the prices on all of its cars sold in the U.S.
This week, Tesla's website showed the price of its Model Y long-range increased from $62,990 to $65,990, with U.S. deliveries being delayed by up to one month.
The 5 percent price increase comes as automakers are struggling to source chips and other supplies, as well as due to industry-wide raw material price hikes, including for aluminum and lithium used in cars and batteries.
According to Credit Suisse, in some cases the Tesla price hike is the fourth in the U.S. in 2022, stating, "While some concerned price hikes will destroy demand, for now Tesla remains supply-constrained."
Lithium is the main cause for cost increases and "a limiting factor" to EV growth, encouraging carmakers to participate in the lithium business, Tesla Chief Executive Elon Musk said.
Rival Rivian Automotive has also raised prices by more than $10,000 for new orders of its base model.
During Deutsche Bank's recent Global Auto Industry Conference, Rivian Chief Financial Officer Claire McDonough said despite the price rises, customers were opting for the most high-end models.
"That's leverage, as we think about the world of inflation, and the pricing headroom that we believe we have for our vehicles," he added.
Musk, the world's richest person, said earlier this month that he had a "super bad feeling" about the economy and that Tesla needed to cut jobs by 10 percent. He has also warned this week about the risk of a recession.
Get a daily dose of Israel Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Israel Herald.
More InformationBRUSSELS, Belgium: Negotiations on a free trade agreement between the European Union and New Zealand ended successfully this week, paving ...
CAIRO, Egypt: Egyptian authorities have prohibited swimming in a stretch of the Red Sea after an Australian woman was killed ...
NEW YORK CITY, New York: Bette Nash, age 86, has been named the longest serving flight attendant in the world, ...
LONDON, England: A UK parliamentary committee has told lawmakers that they may not bring babies to parliamentary proceedings and debates.The ...
WASHINGTON D.C.: Hershel "Woody" Williams, the final surviving Medal of Honor recipient from World War Two, has died at a ...
SEATTLE, Washington: A Norwegian cruise liner has canceled its sailing and returned to port after damage was discovered following its ...
SYDNEY, NSW, Australia - Stocks in Asia generally moved higher on Monday despite continuing concerns over a potential global recession.U.S. ...
WASHINGTON D.C.: Due to surging food prices, summer cookouts for the U.S. Independence Day holiday are more expensive, forcing Americans ...
WASHINGTON D.C.: In a cardboard box factory outside Baltimore, people have been walking into the office of Paul Centenari, chief ...
DELFT, Netherlands: IKEA officials said this week that the furniture retailer's warehouses in Europe are as full as they were ...
NEW YORK CITY, New York: After the first six months of 2022, the S&P 500 recorded a loss of 20.6 ...
WASHINGTON D.C.: Due to the record high trade deficit and a resurgence in COVID-19 infections that curbed spending on services, ...