EV maker Tesla on Wednesday raised costs of its U.S. Model Y crossovers and Model 3 Lengthy Vary sedans by $1,000 every and a few China-made Mannequin three and Mannequin Y automobiles $1,582.40.
The corporate elevated costs for probably the most reasonably priced variations of Mannequin three and Mannequin Y a couple of dozen instances final yr in the US, in accordance with knowledge tracked by Reuters.
The U.S. worth of the EV maker’s Mannequin Y Lengthy Vary automobile has jumped 20 p.c from January 2021, together with a 10.6 p.c hike for its Mannequin three Lengthy Vary sedan throughout the identical interval.
The transfer comes amid surging uncooked materials prices, made worse by Russia’s invasion of Ukraine, and will set again the dream of Tesla CEO Elon Musk and different auto executives to roll out extra reasonably priced electrical automobiles.
Rising costs of nickel, lithium and different supplies threaten to gradual and even quickly reverse the long-term development of falling prices of batteries — the costliest a part of EVs — hampering the broader adoption of the expertise, stated Gregory Miller, an analyst at trade forecaster Benchmark Mineral Intelligence.