Tesla is Raising Prices Due to Supply Chain Pressures, Musk Explains

01 June 2021

    The price of Tesla vehicles is rising due to supply chain pressures in the auto industry, particularly for raw materials, Elon Musk said on Monday, as a response to a tweet by @Ryanth3nerd, which said, "I really don't like the direction @tesla is going raising prices of vehicles but removing features like lumbar for the Model Y..."


    Indeed, in May, Tesla increased its Model 3 and Model Y prices, the automaker's fifth incremental price increase for its vehicles in just a few months, due to a time filled with what Musk had called "some of the most difficult supply chain challenges," citing a chip shortage. 


    As for the removal of lumbar support on the passenger side in Tesla's Model Y, Musk said, "Moving lumbar was removed only in front passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no usage. Not worth cost/mass for everyone when almost never used."

    *The products advertised are only available to clients under Fondex Limited (SDL No: SD037). Trading CFDs involves significant risk of loss.