Inflation has been a growing concern in the economy for several months now. As shortages continue and prices continue to increase, the impacts of inflation continue to reach around the globe. Now, the biggest company in electric vehicle manufacturing will soon see a price hike as a result. Tesla has now begun to increase its vehicle prices in the United States as a result of ongoing inflation.
Tesla recently began raising the prices on its electric vehicles in the United States, as spotted by Reuters. The Tesla Model Y was previously priced at $62,990 and is now being sold for $65,990, showing a roughly five percent increase in price. It’s no secret that supply chain issues have had a strong impact on Tesla’s business, and recent market inflation has exacerbated the issue.
"While some concerned price hikes will destroy demand, for now Tesla remains supply constrained," said Credit Suisse on the situation. Tesla (TSLA) stock was as low as $643.28 per share today on the news of the company’s price raises. Last year, Tesla saw production issues as a result of shortages, blackouts, and port congestion. Earlier this year, the company delayed deliveries of multiple models as a result of production setbacks.
Elon Musk is expected to address Tesla workers this week. Today, he’s holding an all hands on deck meeting at Twitter (TWTR), which he’s expected to close a deal to acquire for the price of $44 billion. If we do get word from Musk on Tesla’s recent price increases and how the company is dealing with inflation, we’ll be sure to update this story.