Tesla raises prices of long-range versions of Model 3 and Model Y as nickel prices rise

Tesla has updated its pricing for the Model 3 and Model Y, raising prices for the longer-range versions by $1,000.

This comes as nickel prices are rising.

In 2021, Tesla raised prices so much that we lost count.

The automaker attributed the increase to pressure from supply chain constraints following the COVID-19 pandemic, but it’s also worth noting that Tesla’s gross margin rose throughout the year.

Things have calmed down on that front over the past few months, with Tesla’s last price hike in November.

But now Tesla is back with a new update for the Model 3 and Model Y configurations, and it’s a price hike again.

Price of Model 3 Long Range increased by $1,000 from $50,990 to $51,990:

The Model 3 Long Range has seen a price increase of about $4,000 over the last year since it was selling for $48,000 in March 2021.

For the Model Y, Tesla increased the price of both the Long Range and Performance versions by $1,000:

The Model Y Long Range has seen its price increase by $10,000 over the past 12 months.

Those new price hikes today come as the price of nickel is rising due to the crisis in Ukraine, leading to sanctions and sanctions on Russia, the world’s third largest producer of nickel – a material critical to high energy density battery cells in some. Electric vehicles are found.

We can’t confirm if the two are related, but interestingly, Tesla only increased the price of vehicles with nickel in their batteries.

The automaker did not increase the price of the base Model 3, which is equipped with an iron-phosphate battery cell that does not require nickel.

Morgan Stanley has warned that a recent 100% increase in the price of nickel will cost electric vehicles like Tesla about $1,000.

The price increase was strong enough that both the London Meta Exchange and the Shanghai Exchange stopped trading some nickel-related contracts.

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