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March 17, 2022: -Tesla has hiked the prices of its electric vehicles in the U.S. and China after CEO Elon Musk warned of inflation pressure on the business.
The company increased the prices of all its models in the U.S. A version of the Model 3 and the Model Y saw price hikes in China. It is the second increase within the previous week.
But Musk tweeted earlier this week saying that Tesla and his space exploration company SpaceX have experienced “significant recent inflation pressure in raw materials & logistics.”
Materials like nickel, a key component of electric vehicle batteries, are rising.
Meanwhile, a flare-up of Covid cases in China and lockdowns in a few cities have added a further challenge to already-stretched supply chains. Critical components such as semiconductors also remain in short supply.
On Tuesday, Tesla’s China website listed the starting price of the Model 3 Performance at 367,900 yuan. The South China Morning Post reported on March 10 the price was 349,900 yuan after an increase that day.
The 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 priced at 417,900 yuan, up from 397,900 yuan previously.
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