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Tesla raises prices for the second time in days due to rising costs

Tesla raises prices for the second time in days due to rising costs

BEIJING, March 15 (Reuters) – Tesla Inc (TSLA.O) It raised its prices in China and the United States for the second time in less than a week, after CEO Elon Musk said the US electric car maker was facing significant inflationary pressures in raw materials and logistics.

The increases come as raw material costs soar, which have been exacerbated by supply chain disruptions in the wake of Russia’s invasion of Ukraine.

Metals used in cars have soared in price, including aluminum used in automobile chassis, palladium used in catalytic converters, and nickel and lithium that power electric vehicle (EV) batteries.

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Costs have raised concerns about the economics of electric cars, as legacy automakers and start-ups prepare to launch new ones against the backdrop of a prolonged semiconductor supply crunch that continues to stifle production at companies including Toyota. (7203.T) and Volkswagen (VOWG_p.DE). Read more

Tesla, which has a diversified supply chain, has Buyer On Monday, CNBC reported, citing internal documents, “aluminium worth millions of euros” from Russian aluminum giant Rusal.

Britain sanctioned the founder of Rusal, billionaire Oleg Deripaska. Read more

Chinese-made Tesla Model 3 cars are seen during a delivery event at its factory in Shanghai, China, January 7, 2020. REUTERS/Ali Song

CNBC said Tesla had purchased Rusal aluminum casting parts at its new vehicle assembly plant outside Berlin for the Tesla Model Y, among other things.

Tesla received the conditional green light for its giant German 5 billion-euro ($5.5 billion) factory earlier this month after months of delays. Read more

Tesla and Rosal did not immediately respond to emails seeking comment.

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“Tesla and SpaceX have had significant inflation pressures lately in raw materials and logistics,” Musk tweeted Monday, referring to his rocket company. “We are not alone,” he said. Read more

Its website showed that Tesla raised prices for all of its models in the US on Tuesday by 5%-10%. In China, it raised prices for some Chinese Model 3 and Model Y products by about 5%.

Last week, the company raised the prices of its American Model Y SUVs, Model 3 long-range sedans and some Chinese-made Model 3 and Model Y vehicles. Read more

(1 dollar = 0.9095 euros)

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Additional reporting by Sophie Yu in Beijing, Brenda Goh in Shanghai, Maria Bonizath in Bengaluru, and Sayantani Ghosh in Singapore.

Our criteria: Thomson Reuters Trust Principles.