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Elon Musk Explains Tesla Model Y and 3 Price Increases

After Teslas' prices have been steadily going up, Musk finally chose to speak up.

The prices of Tesla Models Y and 3 have slowly but surely been increasing, and noone knew why until yesterday, May 31. Elon Musk explained in a tweet that the reason is due to extra supply chain pressures in the auto industry, notably for raw materials. 

Musk was responding to a post from an unverified Twitter account called @Ryanth3nerd which said that they "really don't like the direction Tesla is going raising prices of vehicles but removing features like lumbar for the Model Y."

When answering about the hiked up prices, Musk also took the opportunity to explain about the removal of lumbars in the front seats of Tesla Models Y and 3 because "logs showed almost no usage. Not worth cost/mass for everyone when almost never used." 

Tesla's prices for these models have gone up five times in just a few months, reports Electrek. The price increases themselves are small, but when added up they amount to a significant change in cost. 

For instance, both the Tesla Model 3 Standard Range Plus and Model 3 Long Range AWD saw $500 price jumps. And the most significant price change of all is the Model 3 Standard Range Plus, Tesla’s most affordable vehicle, which has now gone up in price from $37,000 in February to $40,000, per Electrek. As previously mentioned, it all adds up. 

Tesla's Model Y vehicles also mostly saw $500 price increases. The Model Y Long Range AWD used to sell for under $50,000 and now starts at $51,990. 

Global shortages of chips over the past months in the auto industry forced automakers to reduce production, and the results are clearly still noticeable today.

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There will undoubtedly be disgruntled Tesla Models Y and 3 fans out there, but at least now we know the reason behind these increased prices.

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