Tesla Price Rises due to Supply Chain Pressure: Elon Musk


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Tesla CEO Elon Musk blames the irregular supply chain globally amid the ongoing Covid-19 pandemic as the reason behind the recent price rise of its vehicles.

According to him, the price rose because of the supply chain pressures across the auto industry, particularly for raw materials.

Musk explained this when some new Tesla Model Y owners raised the issue of missing lumbar support on the passenger side in their cars.

While replying to one such query on Twitter he blamed supply chain pressure for this issue.


He wrote – 

“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.”

 He went on to add, “Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially.”


In recent months, Tesla has increased the prices of its Model 3 and Model Y cars five times. This price increment started this year, in February.

And since then, there has been a continuous rise in the price of these two electric cars.

The company has not been resistant to the ongoing global supply chain issues, which include the semi-conductor crisis, amid the pandemic. 

As per the reports, Tesla is forced to hold around 20,000 units of Model 3 and Model Y cars because of its missing parts.

This year, in April Elon Musk, confirmed that the electric car company went through chip shortage crisis. 

He had said that Tesla has faced “some of the most difficult supply chain challenges.” However, he had added, “We’re mostly out of that particular problem.”


Therefore, this might be a possible reason why Tesla has been forced to delay deliveries of Model S Plaid. This model is a part of its longest-range electric vehicle with the quickest acceleration.

Deliveries for the Model S Plaid, which Musk himself compared to spacecraft, were originally scheduled to start from June 4. It has now been pushed back by at least a week.



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