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Elon Musk explains the reason for the increase in Tesla prices

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Tesla last week raised the price of the Model 3 by $2,000 to $39,990 for the base model.

The electric vehicle manufacturer also raised the price of the Model Y by $5,000 to $51,990.

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And when a Tesla fan asked about the price increases via Twitter, replied CEO, Elon Musk, said the price increases were beyond his control.

He wrote on Twitter: “Prices are rising due to key industry-wide supply chain price pressures. Especially raw materials.

Car prices, new and used, are at record levels across the industry.

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This is generally attributed to a combination of strong demand and a lack of vehicles for sale due to factory closures due to a shortage of computer chips.

And Tesla didn’t make any of its more expensive models, the Model S and Model X, during the first quarter as it funneled its chips to the Model 3 and Model Y.

It has yet to resume deliveries of either vehicle, although it has again promised that deliveries should resume soon for Model S.

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Tesla suffers from a price increase:

It is noteworthy that computer chips are not the only raw material that suffers from a shortage and an increase in prices.

Prices for lithium, a key material used in electric car batteries, more than doubled in commercial markets.

The price of cobalt, another key battery material, has also risen sharply despite having pulled back from its highs earlier this year.

It is not known what Tesla pays for these raw materials under its supplier contracts.

The same is true for metals used elsewhere in the car, such as steel, aluminum and copper, which have also seen higher prices traded in public markets.

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And even tire shortages have been reported across the industry.

Tesla plans to increase production by more than 50 percent this year, so it is increasing its demand for batteries by the same amount.

Conventional automakers are also ramping up production of electric cars, and thus electric car batteries.

Tesla is trying to control costs where possible. The company recently removed features on the Model 3 and Model Y, such as lumbar support for the front passenger seat.

Musk said Tesla’s data shows that the feature is not used often, and therefore is not worth the extra cost or weight.

Tesla has yet to raise the prices of its two most expensive cars, the Model S and Model X.

Also Read: Tesla Uses In-Car Camera To Monitor Drivers

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