The electric vehicle segment is heating up & major players have already been able to set themselves up in the field. Tesla is one such company that is presently operating not just in North America but also in Europe.
Price Increase By Tesla
Tesla has recently announced an increase in prices of all models. This is not something unexpected as other companies have also done so in the past. However, what makes Tesla special in this regard is that the increase in prices is humongous.
Depending upon the model in question, the price increase varies from €1,800 to €11,200.
Percentage Of Price Increase
For most of its vehicles, Tesla has increased the prices from around 4% to 5%. However, Tesla Model X has been the most affected vehicle as the prices have jumped up by around 10%.
It is also worth noting that the Tesla Model X presently, among other Tesla vehicles, has the highest waiting time for customers.
Even Model 3’s Price Is Now Around €45,000
Model 3 is the company’s entry-level car. However price of even this model now starts from around €45,000. Just a few years ago the same car could be had for around €31,500.
The Tesla Model Y which is currently the most anticipated vehicle from the brand now starts at around €53,000.
Price Increase In Different Tesla Models
Price increase in the various models of the company is as follows:
– The price of the Rear Wheel Drive Model 3 has been increased by around €1,800;
– Long Range All-Wheel Drive model’s price has seen an increase of €2,250;
– The price of the Model 3 performance variant surged by €2,700.
Prices of the Long Range All Wheel Drive and Performance variants has increased by €4,500 and €5,400 respectively.
Prices of the Long Range All Wheel Drive and Performance versions have been increased by €9,000 and €11,200 respectively
The Model Y Long Range All Wheel Drive and Performance variants saw a price increase of €2,700.
What Are The Reasons Behind The Price Increase?
Tesla’s CEO Elon Musk tweeted a few days ago regarding the increasing pressure of inflation rates and the price increases in all Tesla models can be linked to the same issue.
It is also worth highlighting that the prices of some car variants have been increased for the second time in just a matter of a few weeks.
Side Effects Of The Russia-Ukraine War
While inflation can be a major reason behind this price increase, we cannot ignore the current Russia-Ukraine war.
As a result of the war, prices of all metals have skyrocketed lately. This has put additional stress on the automakers.
The automobile manufacturers were already under severe stress due to the pandemic and the semiconductor chip shortage.
Price Hike Of Tesla Vehicles In The European Market
Recent price increases have not been confined just to the United States market rather the Chinese customers are also facing financial pressure.
This leads us to a very important question of whether or not the prices of Tesla vehicles in Europe will increase.
The answer is a definite yes, because Tesla is already operating under nearly optimal conditions in the United States and China where the company is thriving.
On the contrary, the automaker is presently suffering in Europe. The Berlin Gigafactory has already been in a state of shambles.
Thus, we predict that the prices of Tesla vehicles will also increase for the European market as well. Rather this surge in prices will be much more substantial than that observed in the Chinese and US market.