In this situation, Elon Musk can reduce the prices of the Tesla car  07/31/22

In this situation, Elon Musk can reduce the prices of the Tesla car 07/31/22

Electric car maker Tesla has increased the prices of the Model 3 and Co. several times since 2021 considering the rise in raw material costs. Elon Musk has now announced on Twitter when e-cars will be affordable again – but potential buyers will have to wait a while for now.

• Tesla with many price increases in recent months
• Musk wants to cut prices again once inflation stabilizes
• Tesla benefits from the high prices of Model 3, Model Y and Co.

After Tesla’s German customers were still happy about the price drop at the beginning of 2021, there was only one direction for car prices for the American manufacturer: up. Due to high costs of raw materials, shortage of chips and disruption of supply chains, Tesla raised prices for all models several times.

According to “electrek” in the USA all the cars of the group were close Elon Musk 20 to 30 percent more expensive in the last two years. The cheapest version of Model Y at the beginning of 2020 cost 53,000 US dollars, now it is at least 66,000 US dollars. Recently, in June, the prices of all Teslas in the United States were raised to 6,000 US dollars.

In Germany, too, Tesla buyers have to dig deeper into their pockets: According to “Teslamag”, the price of the Model 3 in the basic version rose in one step at the beginning of April by 7,000 euros to 49,990 euros. Since March, the Model 3 Long Range has increased in price by a total of 7,500 euros in three stages, and German customers now have to pay 7,500 euros more for the Model 3 Performance than at the end of February. With Tesla also shelving the creation of a $25,000 car, EV pioneers are increasingly unaffordable. CEO Elon Musk has now announced on Twitter when the price will drop again.

Musk promises lower prices for Tesla

On Twitter, a user asked the aspiring CEO if there are plans to lower Tesla’s price again after the end of the pandemic or supply crisis. Musk confirmed in a tweet that there are plans for a price cut, but cited other factors as important. “If inflation stabilizes, we can lower the price of cars,” the Tesla boss said.

However, it will probably take some time until that happens. In June, inflation in the United States was 9.1 percent per year, the highest rate in more than 40 years – and according to the dpa-AFX news agency, experts believe the peak has not yet been reached. A price cut at Tesla should therefore be far from over for now. If inflation continues to rise, the group’s electric vehicles are likely to become more expensive.

The price hike didn’t hurt Tesla

So far, however, higher prices have not had a negative impact on Tesla – quite the opposite. Group electric vehicles are still in high demand. If you are currently ordering a car, you should expect waiting times of several months. Meanwhile, even Tesla’s profit margin has increased as costs have not risen as much as selling prices, according to electrek. According to the online magazine, the company explained why the prices are still being raised by saying that the current prices should be calculated according to the expected costs in the future. Due to the large order backlog, cars ordered now at a certain price would only be produced in six to ten months – by which time further increases in production costs are expected.

Editorial office

Photo Credit: Andrei Tudoran /,Jim Dyson/Getty Images,jvd-wolf /,Tesla