Tesla Raises Prices For The Second Time In Several Days Due To Rising Costs

Chinese-made Tesla Model 3 vehicles are delivered at a factory in Shanghai, China, January 7, 2020. REUTERS/Aly Song

BEIJING, March 15 – Tesla Inc (TSLA.O) hiked prices in China and the US for the second time in less than a week after CEO Elon Musk said the US electric car maker was facing significant inflationary pressure on raw materials. materials and logistics.

The increase is due to a sharp increase in commodity prices exacerbated by disruptions in the supply chain following Russia’s invasion of Ukraine.

The prices of metals used in cars have risen sharply, including aluminum used in bodywork, palladium used in catalytic converters, and nickel and lithium used in electric vehicle (EV) batteries.

The costs have raised concerns about the EV economy as legacy automakers and startups gear up for new vehicles amid a prolonged semiconductor supply crisis that is still choking production at companies like Toyota (7203.T) and Volkswagen (VOWG_p.DE). More

Tesla, which has a diversified supply chain, bought “millions of euros” worth of aluminum from Russian aluminum giant Rusal, CNBC told Monday, citing internal documents.

British billionaire Oleg Deripaska has come under British sanctions. More

Tesla has bought Rusal’s aluminum for casting parts at its new car assembly plant outside of Berlin for the Tesla Model Y, among other things, CNBC reports.

Earlier this month, after several months of delay, Tesla received a conditional green light to build its €5 billion ($5.5 billion) German gigafactory. More

Tesla and Rusal did not immediately respond to emails asking for comment.

“Tesla and SpaceX have been experiencing significant inflationary pressures in raw materials and logistics lately,” Musk tweeted Monday, referring to his rocket company. “And we are not alone,” he said. More

Tesla on Tuesday increased the prices of all its models in the US by 5-10%, according to its website. In China, he raised the price of some Chinese-made Model 3s and Model Ys by about 5%.

Last week, the company raised prices on US Model Y SUVs and Model 3 Long Range sedans, as well as some Chinese-made Model 3 and Model Y vehicles. More

($1 = €0.9095)

Reporting by Sophie Yu in Beijing, Brenda Goh in Shanghai, Maria Ponnezhat in Bangalore and Sayantani Gosh in Singapore Editing by Clarence Fernandez and Mark Potter

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