Elon Musk: Tesla prices rise due to supply chain problems

Tesla Motors CEO Elon Musk said Monday night that the price of its vehicles is rising due to supply chain problems that have affected the auto sector.

“Prices are increasing due to supply chain price pressure across the industry. Especially raw materials, ”Musk said in response to a tweet complaining about the management of the electric vehicle company.

The complaining Twitter user said Tesla is “raising vehicle prices but eliminating features like lumbar for the Model Y”.

Musk explained that the company removed lumbar support for the passenger seat on some models because the data showed it was rarely used, so it wasn’t worth the cost, before citing general pricing pressures.

Tesla raised the prices of its Model 3 and Model Y in May, the fifth incremental increase in recent months, according to the Electrek website.

Musk told investors in April that the company was facing a chip shortage as supply chains struggle to keep up with EV ambitions.

The issue caught the attention of President Biden. It is pushing to increase domestic semiconductor and battery production without help from China.

He recently touted a new battery manufacturing partnership between Ford Motor Co. and SK Innovation, a South Korean company, that will produce power from a plant in Georgia as part of the administration’s $ 174 billion electric car initiative.

On Tuesday, 7-Eleven stores announced they would build 500 EV charging ports at 250 of their stores in the US and Canada by the end of 2022, compared to 22 charging stations at 14 stores in four states.

“7-Eleven has always been a leader in new ideas and technology to better serve the needs of our customers,” said 7-Eleven President and CEO Joe DePinto. “Adding 500 charging ports in 250 7-Eleven stores will make EV charging more convenient and help accelerate the wider adoption of EVs and alternative fuels. We are committed to the communities we serve and to working for a more sustainable future ”.

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