Tesla Hikes Car Prices as CEO Elon Musk Warns About Inflation

• Tesla has hiked the prices of its electric vehicles in both the United States and China after Elon Musk warned about the rate of inflation

• There has been a drastic rise in the price of key components of its electric vehicle batteries, including nickel

• The Model 3 and Model Y versions of its vehicles have experienced price hikes twice within the last week

Tesla has raised the prices of its electric vehicles in the United States and China, just a few days after CEO Elon Musk lamented about the risk of inflation to businesses.

The company announced on Monday that it had raised the price of all its models in the U.S. In China also, the prices of its Model 3 and Model Y versions have been hiked and this is the second price increase within a week.

Tesla has failed to give a reason for the increase. It however comes after the billionaire CEO of the company, Elon Musk made a post on Twitter saying that his space exploration company, SpaceX has witnessed significant inflation pressure in raw materials and logistics.

According to CNBC, materials such as nickel, which is a key component of electric vehicles batteries are on the rise.

Read also: Elon Musk Breaks up With Partner Grimes, After Welcoming Second Child

On Tuesday, the electric car company’s website in China listed the starting price of the Model 3 Performance at 367,900 yuan. This is a slight increase from the price of 349,900 yuan that was listed on March 10.

The Model Y Long Range went up from 357,900 yuan to 375,900 yuan, while the Model Y performance is currently priced at 417,900 yuan from 397,900 yuan.

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