Tesla raises prices for Model 3 and Model Y again

Tesla on Wednesday raised the prices of its US Model Y SUVs and Model 3 Long Range sedans by $1,000 each and some China-made Model 3 and Model Y vehicles by 10,000 yuan ($1,582.40), according to its website.

The company raised prices for its most affordable versions of the Model 3 and Model Y about a dozen times last year in the United States, according to data tracked by Reuters

The US price of the EV maker’s Model Y Long Range car is up 20% from January 2021, along with a 10.6% increase for its Model 3 Long Range sedan over the same period.

The move comes amid rising raw material costs, exacerbated by Russia’s invasion of Ukraine, and could thwart Tesla CEO Elon Musk and other auto executives’ dream of rolling out more affordable electric vehicles.

Rising prices of nickel, lithium and other materials threaten to slow and even temporarily reverse the long-term trend of falling costs of batteries — the most expensive component of EVs — hindering wider adoption of the technology, said Gregory Miller, an analyst at the industry. forecaster Benchmark Mineral Intelligence.

($1 = 6.3195 Chinese Yuan)

(Reporting by Hyunjoo Jin in San Francisco and Abinaya Vijayaraghavan in Bengaluru; editing by Uttaresh.V)