Tesla CEO Elon Musk speaks at a Chinese-made Tesla Model 3 delivery ceremony in Shanghai, east China, 7 January 2020.
Ding Ting | Xinhua News Agency | Getty Images
Tesla has raised prices for its electric vehicles in the US and China after CEO Elon Musk warned of inflationary pressures on the business.
The company has raised the prices of all its models in the US. In China, the prices of Model 3 and Model Y versions have risen. This is the second increase in the last week.
Tesla did not give a reason for the increase. The company was not immediately available for comment when it contacted CNBC.
But earlier this week, Musk tweeted that Tesla and its space exploration company SpaceX were facing “significant recent inflationary pressures in raw materials and logistics.”
Materials such as nickel, a key component in electric vehicle batteries, are on the rise.
Meanwhile, the outbreak of Covid in China and lockdowns in some cities have added more challenges to already stretched supply chains. Critical components such as semiconductors also remain in short supply.
On Tuesday, Tesla’s China website listed a Model 3 Performance starting price of 367,900 yuan ($57,648). The South China Morning Post reported on March 10 that the price was 349,900 yuan after a previous rise on the same day.
Model Y Long Range in China now costs 375,900 yuan – up from the previous price of 357,900 yuan. The Model Y Performance is currently priced at 417,900 yuan, up from 397,900 yuan previously.