Tesla hikes prices on soaring raw materials

Photo: EPA Elon Musk, CEO of Tesla Inc.

US producer of electric cars Tesla is forced to raise the prices of vehicles due to surging costs of raw materials, Reuters reported citing Tesla's CEO and majority stock holder Elon Musk. Musk elaborated on increased prices during an exchange of messages on Twitter. "Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially," Musk added.

He was „provoked and was seen responding to an unverified Twitter account called @Ryanth3nerd, which said, "I really don't like the direction @tesla is going raising prices of vehicles but removing features like lumbar for the Model Y"

In May, Tesla increased its Model 3 and Model Y prices, the automaker's fifth price increase for its vehicles in just a few months, the Electrek website reported. During an earnings conference call in April, Musk said Tesla had experienced “some of the most difficult supply chain challenges,” citing a chip shortage. “We’re mostly out of that particular problem,” he added at the time.

In response to the removal of lumbar support on the passenger side in Tesla's Model Y, Musk said, "Moving lumbar was removed only in front passenger seat of 3/Y. Logs showed almost no usage. Not worth cost/mass for everyone when almost never used."

Earlier this week the Electrek reported that new Tesla Model Y owners are reporting that their electric SUVs are being delivered without lumbar support on the passenger side.

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