Tesla raises prices for the second time in less than a week; Cheapest model is now $46,990

Yesterday, Tesla CEO Elon Musk said in a post on Twitter that his electric carmaker and rocket company SpaceX are facing heavy inflationary pressure in raw materials and logistics.

In a tweet on Monday, Musk said, “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics,” Musk tweeted on Monday, referring to his rocket company. “And we are not alone.”

After Musk’s tweet, Tesla raised prices on all its vehicles for the second time in less than a week. The cheapest Model 3 in the U.S. is now $46,990, according to the information on Tesla’s website.

Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics

— Elon Musk (@elonmusk) March 14, 2022

Tesla raised prices on Tuesday for all its models in the United States by 5%-10%, according to the information on its website. In China, Tesla also raised prices of some China-made Model 3 and Model Y products by about 5%. Last week, the company increased the prices of its U.S. Model Y SUVs and Model 3 Long Range sedans and some China-made Model 3 and Model Y vehicles.

Meanwhile, the inflation pressure is affecting all carmakers. The ongoing inflation and price increases come as costs of raw materials are surging, further exacerbated by the ongoing war between Russia and Ukraine.

Prices of metals used in vehicles have soared. For example, the prices of aluminum that is used in the bodywork, palladium used in catalytic converters, and nickel and lithium that power electric vehicle (EV) batteries, have all gone up in recent months.