Tesla hikes car prices in the U.S., China after Musk inflation warning

Tesla CEO Elon Musk speaks at a delivery ceremony for Tesla China-manufactured Product 3 in Shanghai, east China, Jan. 7, 2020.

Ding Ting | Xinhua News Agency | Getty Illustrations or photos

Tesla has hiked the costs of its electric motor vehicles in the U.S. and China soon after CEO Elon Musk warned of inflation pressure on the company.

The corporation elevated the selling prices of all its products in the U.S. In China, a model of the Product 3 and the Product Y saw price hikes. It is the second maximize within the last week.

Tesla did not give a cause for the raises. The business was not quickly accessible for comment when contacted by CNBC.

But Musk reported in a tweet before this week that Tesla and his room exploration organization SpaceX have viewed “considerable latest inflation strain in uncooked components & logistics.”

Elements this sort of as nickel, a key element of electric powered car batteries, are on the increase.

Meanwhile, a flare-up of Covid situations in China and lockdowns in some towns have added a even further challenge to presently-stretched provide chains. Essential factors like semiconductors also remain in limited offer.

On Tuesday, Tesla’s China website mentioned the starting price tag of the Design 3 Functionality at 367,900 yuan ($57,648). The South China Morning Publish noted on Mar. 10 the value was 349,900 yuan just after a former increase that day.

The Design Y Very long Range in China now expenses 375,900 yuan — up from the preceding price tag of 357,900 yuan. The Product Y General performance is currently priced at 417,900 yuan, up from 397,900 yuan previously.