Tesla’s four mainstream models all increase in price by up to $5,000, and orders will not be delivered until next year
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On October 24, according to foreign media reports, on Saturday, local time in the United States, Tesla once again raised the prices of the company’s four mainstream models. Among them, the long-life version of Model Y and the upgraded version of Model 3 have increased the price of $2,000, and the price of the long-life version of Model S and the long-life version of Model X has increased by $5,000.
Tesla raised the price of the long-range Model Y for the mass market from US$54,990 to US$56,990. The model is expected to be delivered in May next year. The upgraded Model 3 with standard battery life was the only model Tesla sold for less than US$40,000 two months ago. It has now risen from US$4,1990 to US$43,990, and is expected to be delivered in June 2022.
At the same time, the upgraded versions of Tesla’s flagship models Model S and Model X have also increased their prices. However, the price increase only involves the long-life version of Model S and Model X, and does not affect the higher-performance Plaid version. Among them, the long-life version of Model S has been raised from 89,990 US dollars to 94,990 US dollars, and is scheduled to be delivered in June next year. The long-life version of Model X has risen from US$99,990 to US$104,990, and is expected to be delivered in September 2022.
As we all know, the demand for Tesla cars continues to grow, but its production capacity has grown slowly. Tesla currently produces cars at the Fremont plant in northern California and the Shanghai plant in China. However, the company plans to put two new factories into production in the next few months, although the company is not sure whether the new production line will be ready before the end of 2021.
In the third quarter 2021 earnings conference call, Tesla Chief Financial Officer Zachary Kirkhorn said: “We set goals for Austin, Texas and Berlin, Germany by the end of this year. To produce the first mass-produced car. This is still our goal, and all our plans are built around this goal.”
But Kirkhorn added: “For regulatory reasons, even if we produce cars at these two plants, they may not be able to deliver them before the end of 2021.”
Tesla’s production capacity will undoubtedly increase significantly in 2022, but it may not be achieved before the end of the year as the company plans, because German and Texas regulations may delay its initial production efforts. By 2022, Tesla will spend a lot of time expanding the production capacity of these factories in order to meet demand on a global scale.
It is not clear whether Tesla’s price increase this time is due to a large backlog of orders or a shortage of parts. Tesla has been able to avoid many bottlenecks that affect other automakers, but the company made it clear on the earnings call that maintaining business operations is a major challenge while supply chain uncertainty still exists.
