Tesla Model 3, Model Y Prices Hiked in US, China Amid Surging Cost of Raw Materials

Electric-car maker Tesla on Wednesday raised prices of its US Model Y SUVs and Model 3 Long Range sedans by $1,000 (roughly Rs. 76,000) each and some China-made Model 3 and Model Y vehicles by CNY 10,000 (roughly Rs. 1,20,300), according to its website.

The company increased prices for the most affordable versions of Model 3 and Model Y about a dozen times last year in the US, according to data tracked by Reuters.

The US price of the EV maker's Model Y Long Range car has jumped 20 percent from January 2021, along with a 10.6 percent hike for its Model 3 Long Range sedan during the same period.

The move comes amid surging raw material costs, made worse by Russia's invasion of Ukraine, and could set back the dream of Tesla Chief Executive Elon Musk and other auto executives to roll 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 part of EVs — hampering the broader adoption of the technology, said Gregory Miller, an analyst at industry forecaster Benchmark Mineral Intelligence.

© Thomson Reuters 2022