Tesla quietly increased the prices of four of its electric cars this weekend, just days after it announced a record $1.6billion profit for its third quarter. Electrek first reported that the prices of the Model 3 and Model Y base electric vehicles have increased by $2,000 to $43,990 and $56,990, respectively. The base Model S and Model X will cost $94990 and $104,990 respectively.
Despite the worldwide semiconductor shortage, Tesla posted a strong third quarter. Elon Musk, Tesla CEO, stated in June that Tesla's incremental price increases on the Model 3 & Model Y in the first half 2021 were due to supply chain shortages. However, the company was able rewrite its vehicle software to support alternative chips.
Other auto companies like Toyota, Ford and Volkswagen have not had the same luck. They took measures such as increasing vehicle prices or temporarily closing factories to deal with the chip shortage.
Although Tesla has not offered any explanations for the recent price increases, Zach Kirkhorn, the company's chief financial officer, stated during the third quarter earnings call that increased demand for electric cars caught them a bit off-guard.
Kirkhorn stated that pricing changes can sometimes seem illogical to the general public. There is a strategy behind pricing changes. We balance supply and demand as well as trying to manage wait times. All that goes into optimization.
Updated October 24, 2012 at 02:04 ET: More detailed quote from Tesla CFO.
