Elon Musk says supply-chain issues have forced Tesla to increase prices multiple times this year, pushing its cheapest model to $42,000

Elon Musk, Tesla CEO, stated that Tesla was forced to increase prices in order to address supply-chain problems.
This week, the carmaker increased the prices of its Model 3 and Model Y models by $2,000

Tesla has increased prices in its entire line-up several times this year.

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Tesla raised its prices for cars multiple times this year.

The electric carmaker increased prices across its entire line-up in the first quarter of this year and again in July. In an overnight update posted on its US website, Tesla recently increased the prices of the Model 3 and Model Y. This was in addition to a $2,000 price hike for its cheapest model.

The Model 3 Standard Range Plus price was $41,990, while the Model 3 Performance price rose to $57,990. The Model Y prices rose $1,000 to $2,000 more.

The Model 3 and Model Y's starting prices were reduced earlier in 2021. However, they have been raised twice since then making the Model 3 Standard Range Plus $5,000 higher than February and more expensive than the $35,000 price range that was available before the pandemic.

Elon Musk, Tesla CEO, stated that the supply-chain crisis had forced the price increases at the annual shareholder meeting.

Musk stated that there is "significant cost pressure in our supply chains." Musk stated, "So we have had to raise vehicle prices, at most temporarily. But we do hope that we can actually lower the prices over time and make them less expensive."

Tesla representatives did not respond immediately to a request for comment.

Musk noted that Tesla had to spend extra money to fly parts to avoid major US port bottlenecks. Musk stated that the automaker has been faced with "super crazy shortages" as well as "insane problems" due to the global shortage of computer chips. He also mentioned delays at ports and COVID-19 restrictions in China.

Musk said that Tesla would release a lower-priced vehicle in 2020. This will be close to $25,000 by 2023, which is nearly half the price of its current cheapest model. Musk has said that he doesn't have the ability to meet specific product deadlines, so take his timeline with a grain.

Tesla achieved its highest profit quarter in its history, despite supply chain problems. In June, Tesla raised its prices to achieve a net income of $1 billion.