Tesla Rushes To Hike Prices Of Some Model 3, Model Y Cars In US Amid Surging Nickel Prices

Tesla Inc TSLA has raised the prices of some of its Model 3 and Model Y variants in the United States by $1,000 at a time when nickel has zoomed to record highs amid a supply squeeze caused by the Russia-Ukraine war.

What Happened: Tesla bumped up the price of its Model 3 Long Range version to $51,990 with expected delivery in May this year, the company's website showed.

The Model Y Long Range and Performance versions are now priced at $54,940 and $59,940, respectively, with a delivery timeline of September for the Long Range edition and May for the Performance edition.

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There is no change in price for the Model 3’s rear-wheel-drive version.

Tesla did not respond to Benzinga's request for comment outside of business hours.

Auto news portal Electrek first reported the development.

Why It Matters: This is the first such price hike the current global EV leader has taken this year after a spate of increases in 2021 due to chip shortages and raw material costs. 

Tesla is among the first automakers to raise prices amid a backdrop of skyrocketing prices of nickel and other key materials that are used in EV batteries.

See Also: Why Tesla, Rivals Could Find It Tough To Launch Affordable EVs If Russia-Ukraine War Keeps Raging

China’s top commodity bourse on Wednesday paused nickel trading after prices hit their upper limit, a day after a similar surge prompted the London Metal Exchange to take similar action.

Tesla closed 2021 on a high with nearly 1 million electric vehicle deliveries and a record automotive gross margin of 29.3%, compared with 25.6% in 2020.

Price Action: Tesla stock rose 4.2% higher at $858.9 a share on Wednesday.

Photo Courtesy: Tesla