Tesla cars become pricier in US, China for second time in a week

Tesla has increased the prices of electric vehicles on Tuesday for the second time in less than a week's duration. This move comes after the Tesla chief Elon Musk informed that the EV company is facing significant inflation pressure.

The hike in the prices of electric vehicles is a consequence of the increase in the cost of raw materials that have taken a leap after Russia invaded Ukraine. Tesla has raised the prices for all its models in the United States, showed the website whereas, in China, it increased the prices of some China-made Model 3 and Model Y products by about 5 per cent, following the hike on March 10.

In China, after the price hike, the Model Y Range EV will cost one 375,900 yuan which is up 18,000 yuan from March 10. Tesla Model 3 will cost one 367,900 yuan. It also registered an increase of 18,000 yuan following the hike of 10,000 yuan five days ago.

A previous report had mentioned about Tesla Model Y becoming one of the bestselling electric vehicles in China in February 2022. This EV has also become a crucial product in the EV company's list along with Tesla Model 3 which is its global bestselling model. China Passenger Car Association (CPCA) informed Tesla sold around 23,300 China-made EVs in the country last month which is up by 27 per cent compared to the same period in the preceding period. Tesla also exported 33,315 made-in-China electric vehicles last month.

Tesla had also informed about its plans to build another EV factory in Shanghai to meet the increasing demand for EVs in China. The company currently produces its Model 3 and Model Y electric cars in its Shanghai plant. Along with catering to the Chinese market, it also manufactures models for its overseas markets.