Tesla puts prices up again as they battle inflation pressure and supply issues

Tesla’s prices have taken a hike, rather literally, as they face two increases in just one week.

A few days ago, Tesla’s long-range line-up got struck with a $2000 price increase.

Overnight, another price spike comes into play. The cheapest standard range Model 3 will now cost you $72,400 NZD.

The long-range and performance variants have also changed their price tag, with a roughly $5000 increase.

Tesla has refused to comment on the price changes. Still, we can safely presume supply strains and the rising cost of raw materials like nickel are to blame.

EVs worldwide are in for some added production cost as nickel prices soar to unprecedented highs. The metal is an essential component in making lithium-ion batteries.

Some entry-level Teslas use lithium-iron phosphate batteries, which don’t require nickel.

But Tesla CEO Elon Musk took to Twitter to cite inflation pressure and logistic issues to blame for rising prices.

It’s a problem that could concern rival automakers as they also transition towards building electric vehicles.

Despite oil prices still as high as ever, EVs could quickly become unaffordable substitutes if raw materials remain expensive and supply doesn’t ease up.

New Zealand’s cheapest EV remains the MG ZS EV, selling for $48,990 before the Clean Car rebate.