Get All Access for $5/mo

Tesla Raises Prices After Elon Musk Tweets About Inflation This is the second time Tesla has increased prices over the past week.

By Chloe Arrojado Edited by Jessica Thomas

Smith Collection/Gado | Getty Images

Tesla has increased the prices of its electric vehicles in the U.S. and China between three and five percent after Elon Musk tweeted about inflation pressures affecting the company.

This is the second time Tesla has raised its prices over the past week, with a first price bump implemented on some long-range models on Wednesday. However, the Verge notes that this new price bump is not only more substantial than last week's, but it also applies to every vehicle Tesla sells.

Related: Elon Musk Secretly Welcomed a Second Child

The price increase comes after Musk publicly noted Tesla's issues on Twitter. On Sunday, Musk asked Twitter users for their thoughts on the "probable inflation rate over next few years," prompting people like Mark Cuban to respond. On the same Twitter thread, Musk added that both Tesla and SpaceX were seeing inflation issues in raw materials and logistics.

There are several reasons for the inflation pressures. Companies have been battling a semiconductor chip shortage since the onset of the pandemic, and Russia's invasion of Ukraine has disrupted the global supply chain.

According to Reuters, Wells Fargo analysts found that prices of nickel, an element used in batteries, were up 130%, while cobalt, lithium and aluminum prices increased anywhere from 16 to 88 percent this year.

As of Tuesday morning, Tesla stock has increased by 3.29% over a 24-hour period.

Related: Elon Musk Offers Advice on Inflation, Says He Won't Be Selling Crypto: 'It Is Generally Better to Own Physical Things'

Chloe Arrojado

Entrepreneur Staff

Editorial Assistant

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.