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Tesla silently raised prices of four of its electric vehicles this weekend, a few days after the automaker announced a record $1.6 billion profit in its third quarter. First reported by Electrek, the base Model 3 and Model Y electric vehicles are each priced $2,000 higher, at $43,990 and $56,990 respectively. In addition, the base Model S and Model X vehicles will each cost $5,000 more, at $94,990 and $104,990
Tesla had a banner third quarter despite the global semiconductor shortage that has plagued other carmakers. Tesla CEO Elon Musk made a statement in June that Tesla’s incremental price hikes on the Model 3 and Model Y during the first half of 2021 were due in large part to supply chain shortages. But the company was able to rewrite it’s vehicle software so it could support alternate chips.
Other automobile companies like Volkswagen, Ford, and Toyota have not been as fortunate, taking measures like increasing their cost of vehicles and temporarily shutting down factories to try to balance the chip shortage.
Tesla hasn’t offered an explanation for the latest price hikes, but company CFO Zach Kirkhorn said during its third quarter earnings call with investors that the increased demand for electric vehicles “caught us a little bit off guard.”