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Tesla puts up prices for second time in a week as cost pressures build | Business News

Electric car maker Tesla has put up its prices in the US and China for the second time in less than a week – after boss Elon Musk complained of rising costs.Raw material prices have been surging following Russia’s invasion of Ukraine – including various metals used to make cars and notably nickel, which is a key input for electric car batteries.
It adds to the supply strains facing car makers including Tesla, which have seen production held back in recent months because of a global shortage of semiconductor chips.

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Elon Musk noted inflation pressure facing both Tesla and his space rocket business SpaceX

Mr Musk tweeted earlier this week that both Tesla and his space rocket business SpaceX had seen “significant recent inflation pressure in raw materials & logistics”.He added “we are not alone” and retweeted a news article about commodity costs soaring because of the war in Ukraine.
Tesla raised prices on Tuesday for all its models in the United States by 5%-10%, its website showed.
In China, it put up prices of some locally-made Model 3 and Model Y products by about 5%.
Last week, Tesla raised prices of its US Model Y sports utility vehicles and Model 3 Long Range sedans and some China-made Model 3 and Model Y vehicles.The higher costs are likely to be taking their toll across the industry at a time when traditional car makers are looking to switch away from combustion engine vehicles towards battery power.In January, Tesla posted an annual profit of $5.5bn but warned that supply chain problems that have dogged production in recent months would extend into this year.

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