Tesla Raises Prices On The Model 3 And Model Y EVs Again

Tesla (TSLA) has once again raised the prices of its Model 3 and Model Y EVs amid a spike in the cost of nickel caused by sanctions from the Russian invasion of Ukraine.

The price increases affect the electric carmaker’s Model 3 and Model Y long-range models, which saw $1,000 added to their price tags, Electrek reported.

The Model 3 Long Range configuration goes from $50,990 to $51,990, while the Model Y Long Range and Performance versions have prices of $59,990 and $64,990, respectively, according to Tesla’s website.

The Model 3 Long Range has seen its price increase by $4,000 over the course of the last year, while the Model Y Long Range and Performance have received a bump of $10,000 each in the last 12 months, Electrek said.

While Tesla did not publicly give a reason for the price increase, the culprit appears to be the rising cost of nickel, which is used in some vehicle battery cells. Russia, the world’s third-largest producer of nickel, faces crushing sanctions for attacking Ukraine.

According to Electrek, Tesla has only increased the prices of the electric vehicles that have nickel in their batteries.

This is not the first price increase for Tesla. Over the course of 2021 the automaker raised the prices of its EV lineup numerous times, citing supply chain challenges resulting from the COVID-19 pandemic.

As of Thursday premarket hours, Tesla was trading at $847.32, down $11.65, or 1.36%.