Tesla Inc. has once again raised the prices of its U.S. Model Y SUVs and Model 3 Long Range sedans in China and the U.S.
With the value of the Chinese yuan per U.S dollar set at 6.3195, the cars are now worth 10,000 yuan, an equivalent of $1,582.40, more. The price change is one of a dozen made by the company in the last year, Reuters finds.
The U.S. price of the Model Y Long Range car has increased by 20% since January 2021, while the Model 3 Long Range rose by 10.6%.
The electric car-maker hiked the value of its products as the cost of nickel, lithium and other materials continue to skyrocket.
“The move comes amid surging raw material costs, made worse by Russia's invasion of Ukraine, and could set back the dream of Tesla Chief Executive Elon Musk and other auto executives to roll out more affordable electric vehicles,” U.S. News reported.
The inflation threatens to deter the long-term decreased price of batteries, which are known to be the most expensive parts of the electric vehicles.
The occurrence is expected to produce a delay in the general adoption of advancements in the concept’s technology, analyst at industry forecaster Benchmark Mineral Intelligence, Gregory Miller, said.