Tesla Prices Rise Again, Fifth Times in Months
Tesla Prices Rise Again, Fifth Times in Months

Tesla’s electric car prices have increased again. This is the fifth price increase in recent months. What is wrong? Why did Tesla raise the price of its products again? Like many other manufacturers, Tesla has had to face the harsh reality of disruptions in their supply chains, especially in the raw materials for making cars.

Elon Musk as CEO of Tesla revealed this through his tweet on Twitter on Monday (31/05/2021). Musk answered the question of one Twitter user who complained that Tesla’s electric car prices continued to rise.

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“I really don’t like the direction @tesla is going in to increase vehicle prices but remove features like lumbar support for the Model Y…” tweeted @Ryanth3nerd.

Elon Musk gave an immediate response to the tweet. “Prices are rising due to price pressures on key supply chains across industries. Primarily raw materials,” Elon Musk replied.

Quoted from Reuters, this is not the first time Tesla’s price has gone up in 2021. Tesla has raised prices for the Model 3 and Model Y in May. It has even been recorded that Tesla has raised prices five times in the past few months.

In a press conference held last April, Elon Musk said that Tesla had experienced some big challenges. One of them is the supply chain for raw materials for making cars, as well as the impact of a global shortage of chips.

We’re mostly out of this particular problem. The movable lumbar has been removed and is only in the front passenger seat of the Model 3/Y. Logs show that almost no one is wearing it. It’s not worth the cost and mass for everyone when it’s hardly ever used, said Elon Musk

The scarcity of semiconductor chips due to the COVID-19 pandemic has affected a number of other automotive manufacturers such as Ford, General Motors, Honda, Nissan, Toyota, Hyundai, Jaguar Land Rover, Mercedes-Benz, Stellantis, Subaru, and the Volkswagen Group.

They have to rack their brains to keep sales going even though the shortage of semiconductor chips cannot be anticipated. Nissan, for example, had to cut its car production to 500 thousand units, or Toyota had to temporarily stop production of the C-HR and Yaris Cross.

Musk has previously revealed that Tesla managed to get out of the troubles other automakers are facing. But Tesla was also affected and is now joining in on raising the price of cars.

Regarding the removed lumbar support feature in the Model Y, Elon Musk said the feature is still there but is only available in the passenger seat. This is done in order to save production costs, because drivers rarely activate this feature.