Tesla (TSLA) is raising its vehicle prices again, likely due to the rising costs of raw materials and other components used to make its vehicles. Meanwhile, Giga Berlin is set to begin deliveries by the end of the month. Tesla stock rose.
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The Austin, Texas-based electric-vehicle maker raised prices by 3% to 5% per unit in both the U.S. and China. The cheapest Model 3 in the U.S. now costs $46,990, a $2,000 increase. The Model 3 Dual Motor AWD jumped $2,500 on top of last week’s $1,000 increase to $54,500. The Performance model’s price rose $3,000 to $61,990.
The Model Y SUV base price increased $2,000 to $62,990, while the Performance model was bumped up $3,000 to $67,990.
The Model S now starts at $99,990 — a whopping $5,000 more than the previous price. Model X is seeing a price surge of $10,000 to now start at $114,990.
Inflation Hits Tesla
Tesla CEO Elon Musk hinted over the weekend that inflation was becoming an issue. He tweeted: “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics.”
Wedbush analyst Daniel Ives told IBD in an email that the price increases were not unexpected, as Tesla’s move follows the likes of Amazon (AMZN), Netflix (NFLX) and other tech stalwarts raising prices in this inflationary environment.
“Tesla needs to pass the eye-popping material costs to consumers as demand continues to outstrip supply by 30% today,” he said.
Giga Berlin Set To Open
There is currently a five-to-six month delivery delay for Model Ys and some Model 3s in different parts of the globe as of early March, Ives said in a recent note to clients.
He says the key to alleviating these issues is centered on the key factory openings in Austin and Berlin, which will help solve the bottlenecks of production for Tesla globally.
Giga Berlin is set to open and make its first deliveries on March 22, according to an InsideEVs report.
However, the chip shortage remains an issue for Tesla and other automakers.
Additionally, a wave of omicron infections has prompted lockdowns across China this week. So far, Tesla’s factory in Shanghai has not been shut down. But that may change.
Tesla Stock
Shares popped 3.3% to 791.93 on the stock market today. Tesla stock has been slumping with the overall market recently, as it trades below its declining 50-day line as well as its 200-day line.
MarketSmith charts show Tesla stock is mired in a four-month a consolidation with a 1,208.10. Its relative strength line is ticking down, and its RS Rating sits at 71. Tesla’s EPS Rating is 72. Tesla is a Leaderboard stock.
Among U.S. automakers with a growing EV slate, General Motors (GM) rose 2.2% and Ford (F) was up 1%. Luxury EV startup Lucid (LCID) was down 0.4% and Rivian (RIVN) fell 1.4%.
Among Tesla’s China-based rivals, Nio (NIO) rose 4.3%, Xpeng (XPEV) jumped 7.4% and Li Auto (LI) surged 8.4%. Warren Buffett-backed BYD (BYDDF) gained 2.3%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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