Elon Musk Has Marked Up Tesla Prices For The Second Time In A Week As Costs Mount During The Russo-Ukraine War

Electric car maker Tesla has put up its prices in the US and China for the second time in less than a week - after boss Elon Musk complained of rising costs.

Raw material prices have surged after Russia's invasion of Ukraine - including various metals used to make cars and notably nickel, which is a key input for electric car batteries.

It adds to the supply strains facing car makers including Tesla, which have had production held back in recent months because of a global shortage of semiconductor chips.

Mr Musk tweeted earlier this week that both Tesla and SpaceX, his space rocket business, had endured "significant recent inflation pressure in raw materials & logistics".

He added "we are not alone" and retweeted a news article about commodity costs soaring because of the war in Ukraine.

Tesla raised prices on Tuesday for all its models in the United States by 5% to 10%, its website showed.

In China, it put up prices of some locally made Model 3 and Model Y products by about 5%.

Last week, Tesla raised prices of its US Model Y sports utility vehicles and Model 3 Long Range sedans and some China-made Model 3 and Model Y vehicles.

The higher costs are likely to be taking their toll across the industry at a time when traditional car makers are looking to switch away from combustion engine vehicles towards battery power.

In January, Tesla posted an annual profit of $5.5bn but warned that supply chain problems that have dogged production in recent months would extend into this year.

Leave a Reply