Tesla Raises Its Prices Across Its Cars and This is The Cheapest Model Now

Electric vehicle giant Tesla seems to be riding along the trend of inflation with their recent price boosts.

According to a note from Credit Suisse analyst Dan Levy, the company has increased prices along its lineup and now the cheapest model is going for $46,990.

The cheapest Model 3 in the U.S. is now $46,990, according to Tesla’s website. The company raised prices by 3% to 5% in both the U.S. and China.

CEO Elon Musk tweeted earlier this week that both Tesla and Space Exploration Technologies Corp. were seeing “significant” inflation in raw materials and logistics.

The S&P GSCI Index — a commodity market benchmark — surged 20% the first five days of the month, the biggest weekly gain going back to 1970.

This isn’t Tesla’s first round of price increases in the last week, it’s actually the second. The company also raised the price of certain versions of the Model 3 and Y on March 9 in the U.S., followed by an increase for China-built vehicles in that market on March 10.

Reuters also reported this week that Tesla is suspending Shanghai factory operations for two days, as China tightens coronavirus restrictions to stem its recent Covid-19 outbreak.

In 2021, the country’s share of Tesla’s total revenue rose to 26% from just 12% in 2019.

Tesla shares have dropped 28% this year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.