Tesla raised prices for all its car models in the U.S., amid ongoing global supply-chain issues and rising costs in raw materials.
The Model X Dual Motor All-Wheel Drive went from $114,990 to $120,990. The $6,000 increase is the largest among all models. The Model S Dual Motor All-Wheel Drive configuration increased by $5,000 from $99,990 to $104,990.
The Long-Range Model Y rose $3,000, now sold at $65,990, while the Performance model is up by $2,000 sitting at $69,990. Tesla’s most affordable car, the Model 3, reported the lowest increases.
The EV manufacturer CEO Elon Musk has warned about the risk of a recession. Earlier this month he said Tesla needed to cut 10% of jobs at the company.
Musk has repeatedly pointed at increasing prices on raw materials (mostly lithium), supply chain pressures and the global chip shortage, as the main problems affecting the company’s operations.
The price hike comes as costs of raw materials have surged in recent weeks.
Unlike other car manufacturers, Tesla is known for sudden price adjustments. Earlier this year, it raised the prices twice in one week, increasing all of its U.S. models by between 5 and 10 percent.
Tesla’s price increase comes after Bloomberg reported that Volkswagen could become the top EV seller by 2024.