Tesla bumps Model 3 prices as raw material supplies shrink
Wednesday, 16 March 2022
Tesla has increased the prices of its range across the world, including New Zealand, as the constrained supply of raw materials hits the carmaker.
The base Model 3 has been bumped from $68,900 to $72,400, while the mid-spec Long Range has gone from $82,900 to $86,900. Finally, the Performance has jumped from $95,900 to $100,900.
Nothing changes with regard to the Clean Car Discount, as the entry Model 3 was always the only one to be underneath the $80k limit, so is still eligible for the $8625 rebate.
These increases of roughly five per cent for each model are being felt in other markets too, including the US and China, and are speculated to be due to the rising costs of raw materials such as nickel.
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Nickel is commonly used in EV batteries, and Russia is the third-largest producer of the material in the world. With the sanctions being placed on the country as a result of the invasion of Ukraine, costs for nickel are rising as supply shrinks.
Prices of the metal exceeded US$100,000 per tonne last week, as a short squeeze forced the London Metal Exchange to shut down for a few days.
Ukraine is also a supplier of parts like wire harnesses, production of which has already dropped significantly. One analyst told Automotive News Europe that up to 15 per cent of European production could be at risk because of shutdowns are wire harness factories in Ukraine.
Tesla CEO, Elon Musk, tweeted earlier in the week that both Tesla and SpaceX are “seeing significant recent inflation pressure in raw materials & logistics.”
We can’t comment on the prices of the Model S and X as Tesla has removed pricing for those vehicles from its website.
Tesla has yet to officially comment as well, although Stuff has reached out to the local arm for more information.
In other Tesla news, the Gigafactory in Berlin, Germany is preparing to deliver its first cars from next week.
The factory will produce more than 500,000 cars per year, starting with the Model Y crossover, while its battery plant will generate over 50 gigawatt-hours per year. Eventually, Tesla wants the plant to produce 250GWh per year.