EV maker Tesla hikes Model 3 prices due to supply chain issues

American electric vehicle and clean energy company, Tesla has reportedly increased the prices of Model 3 and Model Y in some of the global markets, including Canada and China.

The rise in prices can be attributed to the pressure coming from supply chain constrains.

Prices of Tesla’s lineup in the US had hiked in the last year, and since then the automaker has increased the prizes a dozen times.

Some prices hikes have also been seen in international markets, but at a lower rate for the most part.

To shed light on some of the details, price of Tesla’s rear-wheel-drive Model 3 in China, with a driving range of 556 kilometers (345 miles), went up by 1.9% to 255,652 yuan (US$39,992) after cutting the discounts, said the carmaker recently.  

Additionally, Tesla raised the prices of Model 3 by 6.4%.

The cost of Model Y was introduced during a surprise launch in January, and was marked up by 1.7% to 280,752-yuan, announced Tesla, without stating why it raised its prices.

However, the cost of Tesla made in Shanghai with sophisticated specifications or driving range remain unchanged.

It is prudent to say that China is Tesla’s most important market, and increasing prices could affect demand. However, the automaker enjoys a noteworthy backlog of orders in the market.

The Canadian market, which is small but essential for Tesla, also saw an increase in prices of Model Y and Model 3 this week.

The changes are more noteworthy as they discarded Model 3 out of the federal Electric Vehicle incentive program.

Additionally, Tesla was further seeking to make the Model 3 qualified for the USD 5,000 federal electric vehicle incentive in Canada, however this can only be applied to vehicles that cost less than CAD 45,000 and not over CAD 55,000.

Source Credit - https://electrek.co/2021/11/24/tesla-increases-prices-globally-supply-chain-issues-persist/