Tesla EV Prices Are Going Up Again: Here’s Why

Tesla (TSLA) is increasing the price of its electric vehicles again, according to a Twitter post from Elon Musk, due to the rising costs of raw materials.

Musk made the announcement Monday in response to a Twitter user that questioned the Tesla CEO’s recent price increase while removing features such as the lumbar support in the Model Y.

Musk responded to the user by saying, “price increasing due to major supply chain price pressure industry-wide. Raw materials especially.”

This is not the first time that Tesla has raised the prices of its vehicles. Last month, Tesla quietly increased the price tags on both its Model 3 and Model Y EVs.

According to Electrek, a total of seven price changes have occurred in recent months on the Model 3 and Model Y vehicles.

The May price increase followed an April earnings call, where Musk said that Tesla was experiencing challenging supply chain issues, including chip shortages that are plaguing the auto industry, CNBC reported.

However, a report from Financial Times on Thursday indicated that Tesla is in talks with a series of chip suppliers in the U.S., Taiwan, and South Korea, to pay up front for semiconductor chip supplies and may even be in the works to purchase a chip factory.

Musk’s response to the user on Twitter about the lumbar support also said that the feature “was removed only in the 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.”

Electrek reported that Tesla SUVs are being delivered without lumbar support on the passenger side, according to Model Y customers.

Shares of Tesla were trading at $629.10 as of 9:35 a.m. EDT on Tuesday, up $3.88, or 0.62%.