Tesla’s vehicle price increases due to supply chain pressure, CEO Elon Musk says

June 2, 2021: -The price of Tesla vehicles is increasing because of the supply chain pressure across the auto industry, particularly for raw materials, Elon Musk said on Monday in response to a tweet.

“Prices increasing because of the major supply chain price pressure industry-wide. Raw materials especially,” Musk said.

He was responding to an unverified Twitter account called @Ryanth3nerd, which said, “I don’t like the direction @tesla is going raising prices of vehicles but removing features like lumbar for the Model.”

In May, Tesla increased its Model 3 and Model Y prices, the automaker’s fifth incremental price increase for its vehicles in just a few months, the Electrek website reported.

During an earnings conference call in April, Musk said Tesla had experienced “some of the most difficult supply chain challenges,” citing a chip shortage. “We’re mostly out of that particular problem,” he added at the time.

In response to the removal of lumbar support on the passenger side in Tesla’s Model Y, Musk said, “Moving lumbar was removed only in the front passenger seat of 3/Y. Logs showed almost no usage. Not worth cost/mass for everyone when rarely used.”

Earlier on Monday, the Electrek reported that new Tesla Model Y owners say that their electric SUVs are being delivered without lumbar support on the passenger side.