Elon Musk explained the rise in price of Tesla cars

3 weeks ago

The founder and head of Tesla, Ilon Musk, named the reasons for the price increase of electric cars. According to him, the main reason lies in problems with the supply chain. CNBC quoted him as saying.

“Prices are going up because of price pressures from major industry-wide supply chains. Especially for raw materials,” he explained. Tesla increased prices for the Model 3 and Model Y in May, the fifth increase in the last few months. In April, Musk had already talked about the difficulties for the company because of the global shortage of chips. “We’re pretty much not solving this particular problem,” he complained.

Elon Musk explained the rise in price of Tesla cars

New cars are now available without lumbar support for the passenger seat. Meanwhile, it is standard in premium cars and is also used in mid-priced cars. In response to customer complaints, Musk said that almost no one uses this feature, so they removed it.

The semiconductor shortage began last year, when the pandemic and shutdowns simultaneously increased demand for the tech. Chips went into computer hardware, which was bought up en masse due to the transition to forced remote working. The most acute impact was felt by the automotive industry: chips are used there both for engine systems and driver assistance systems. Some giants of the industry had to reduce production. Loss of revenues of the automotive industry only this year is estimated at 100 billion dollars.

American companies, including Apple, Google, Amazon and Microsoft, have asked the U.S. government for $50 billion to fight chip shortages and expand domestic semiconductor production.