Tesla’s vehicle cost increments because of supply chain pressure, Elon Musk says
The cost of Tesla (TSLA.O) vehicles is expanding because of supply chain pressures across the auto industry, especially for raw materials, Elon Musk said on Monday in light of a tweet.
“Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially,” Musk said in a tweet.
He was reacting to an unconfirmed Twitter account called @Ryanth3nerd, which said, “I really don’t like the direction @tesla is going raising prices of vehicles but removing features like lumbar for the Model Y…”
In May, Tesla expanded its Model 3 and Model Y costs, the automaker’s fifth gradual cost increment for its vehicles in only a few months, the Electrek site announced.
During an earnings conference call in April, Musk said Tesla had encountered “some of the most difficult supply chain challenges,” citing a chip shortage. “We’re mostly out of that particular problem,” he added at that point.
In light of the expulsion of lumbar help on the traveler side in Tesla’s Model Y, Musk said, “Moving lumbar was removed only in front passenger seat of 3/Y (obv not there in rear seats). Logs showed almost no usage. Not worth cost/mass for everyone when almost never used.”
Prior on Monday, the Electrek detailed that new Tesla Model Y proprietors are announcing that their electric SUVs are being delivered without lumbar help on the traveler side.