Tesla Inc TSLA has raised the prices of some of its Model 3 and Model Y variants in the United States by $1,000 at a time when nickel has zoomed to record highs amid a supply squeeze caused by the Russia-Ukraine war.
What Happened: Tesla bumped up the price of its Model 3 Long Range version to $51,990 with expected delivery in May this year, the company's website showed.
The Model Y Long Range and Performance versions are now priced at $54,940 and $59,940, respectively, with a delivery timeline of September for the Long Range edition and May for the Performance edition.
There is no change in price for the Model 3’s rear-wheel-drive version.
Tesla did not respond to Benzinga's request for comment outside of business hours.
Auto news portal Electrek first reported the development.
Why It Matters: This is the first such price hike the current global EV leader has taken this year after a spate of increases in 2021 due to chip shortages and raw material costs.
Tesla is among the first automakers to raise prices amid a backdrop of skyrocketing prices of nickel and other key materials that are used in EV batteries.
China’s top commodity bourse on Wednesday paused nickel trading after prices hit their upper limit, a day after a similar surge prompted the London Metal Exchange to take similar action.
Tesla closed 2021 on a high with nearly 1 million electric vehicle deliveries and a record automotive gross margin of 29.3%, compared with 25.6% in 2020.
Price Action: Tesla stock rose 4.2% higher at $858.9 a share on Wednesday.
Photo Courtesy: Tesla
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