Tesla hikes prices twice in a week due to rising costs

Tesla is hiking its prices in the United States and China for the second time in a week amid high inflation.

For all models in the U.S., Tesla’s website indicated that prices have risen between 5 and 10 percent, Reuters reported on Tuesday. Some of its Model 3 and Model Y vehicles made in China have increased roughly 5 percent.

Tesla and SpaceX CEO Elon Musk said earlier this week that the companies were experiencing higher “inflation pressure.”

“Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics,” Musk tweeted on Sunday. “And we are not alone.”

CNBC reported on Monday that millions of euros worth of aluminum had been bought by Tesla from Russian company Rusal, citing interviews with current and former employees internal correspondence and invoices.

The aluminum is being used at a vehicle assembly plant near Berlin for casting parts, according to the current and former employees and the array of evidence, CNBC noted.

When Tesla began purchasing the metal in late 2020, the Russian company had not been subject to U.S. sanctions, CNBC noted. While U.S. production of Tesla vehicles does not appear to have used Rusal aluminum, it indicates how the Russian invasion could further complicate issues the global supply chain.

Even if Russian aluminum is not used in the U.S., rising Tesla vehicles prices in U.S. are only compounding already high inflation in the country. Labor Department data released last week showed the highest 12-month inflation rate in 40 years. 

The Hill has reached out to Tesla for comment. The Hill could not reach Rusal immediately for comment.