Elon Musk finally speaks to numerous Tesla price increases

If you're shopping a new Tesla, expect to pay a couple grand more than at the start of this year. The electric carmaker has hit its popular Model 3 and Model Y EVs with multiple price increases in the past few months, quietly tacking on $500 here, another $500 there. CEO Elon Musk finally broke his silence regarding the higher prices on Monday, and according to him, it has everything to do with the supply chain.

Musk addressed the issue by responding to a user on Twitter, who commented they "don't like the direction Tesla is going." He first mentioned the removal of adjustable lumbar support, which he said was "almost never used."

But then he directly addressed the bigger issue: "Prices increasing due to major supply chain price pressure industry-wide." That's the case across many industries but automakers have been particularly hard hit, just as demand for new cars is skyrocketing as pandemic restrictions ease up in the US. 

We haven't had any official word from the company regarding the increases since Tesla doesn't operate a public relations department to field requests for comment. Tesla also doesn't follow traditional "model year" updates, so these types of changes are unusually fluid. Just as quickly as we've seen prices rise, the company slashes them.

Those looking to order a new Model 3 will pay over $2,500 more for the car compared with March. The most affordable EV from Tesla is now $41,190 after a $1,200 destination charge. The least expensive Model Y now costs $53,190.

Tesla Model 3 remains the gold standard for electric sedans

+18 More

See all photos