The Model 3 LR now costs $57,990 in the US as Tesla does another EV price increase round of up to $6,000
Tesla changed the retail tags of its electric cars across the board once again, bringing the Model 3 Long Range starting price to US$57,990. That's an increase of $2,500, after the Model 3 already saw its prices jump three times in the span of a few short months. The Tesla Model 3 LR used to cost $48,000 in March 2021 and started 2022 at $50,990. After a few quick price hikes ranging from $1000-$2,500 this year, the Model 3 Long Range is now more than 20% more expensive than it was last spring.
The Model Y prices also increased, with the Long Range model up $3,000 to $65,990 and the Performance version netting $69,990, a more modest $2,000 bump. The largest of the new Tesla car price hikes went to the Performance Model Y, though, which is now $6,000 more expensive than it was just the other day and will cost $120,990 to willing buyers. The second biggest increase of $5,000 went to the Model S LR which pierced the hundred grand threshold to now sit at $104,990 starting price.
Elon Musk recently said that the constant Tesla EV price increases are forward-looking in anticipation of a perfect storm of assembly issues, component shortages, and raw material price increases. The Shanghai factory is roaring back at 100% capacity, though, and the Fed's interest rate hikes signal a looming recession, plus the prices of nickel and other performance battery metals have long been hedged by Tesla.
The world's biggest EV battery maker CATL recently said it will have no choice but transfer some of the increased material costs to its customers which include Tesla and its standard range vehicles that use its LFP batteries. The new Tesla price bumps mainly affect the long-range and performance models that use other type of batteries, though, yet the electric carmaker traditionally doesn't give any arguments about its frequent tag hikes.
Recent Tesla filings reveal that it is making at least $10,000 profit per EV, the envy of the industry, and the company may want to keep those margins intact as it navigates the new supply chain and inflation normal.