Tesla is jacking up prices of its electric vehicles for the second time in less than a week after Elon Musk said the company was facing pressure from inflation.
Electric vehicle prices are increasing between 5% and 10% across its entire range. Prices of the company's cheapest car, the Model 3 Rear-Wheel Drive, rose from $44,990 to $46,990. The cost of its more expensive Model X Tri motor increased from $126,490 to $138,990, according to The Verge. Just last week, the company also increased the price of some long-range models.
While the company and Musk haven't spoken publicly about the price raises specifically, Musk said earlier this week that inflation is hitting Tesla and SpaceX.
“Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics," he tweeted. He added, "And we are not alone," linking to a story about a rise in the prices of raw materials since the war in Ukraine unfolded.
The war may also have an effect on EV production. Russia is a massive supplier of nickel, which is used in batteries for many EVs, and the price of nickel has recently soared. Last month, Musk tweeted that nickel is the company's "biggest concern" for ramping up lithium-ion cell production. "That’s why we are shifting standard range cars to an iron cathode. Plenty of iron (and lithium)!" he tweeted.
The price hike follows a similar move by Rivian. The company announced it would raise prices for its two electric vehicles even for early reservation-holders. The company faced a ton of backlash for the move and walked back the retroactive increase, which Rivian executives blamed on inflation and the cost of materials. Many customers said they'd cancel their reservation for the vehicles as a result, but Tesla customers don't seem to be too worked up about the new prices — for now.