TSLA stock up 0.5% in pre-release, Tesla vehicle price rises due to pressure in auto industry
The price update has taken place due to a significant increase in commodity prices as well as other tensions within the automotive industry. In April, Elon Musk said he had problems with the supply chain. Now the business has the same problems.
Electric vehicle giant Tesla Inc (NYSE: TSLA) is seeing the price of its vehicles rise. In particular, its Model 3 and Model Y have become more expensive, with the removal of the passenger side lumbar support from the Model Y at the same time. While some criticize Tesla for this move, Elon Musk explains that the price increase is only the result of “supply chain pressure” in the auto industry on a global scale.
In response to a tweet from user @ Ryanth3nerd, Musk wrote:
The mobile lumbar was only removed on the front passenger seat of 3 / Y (obviously absent from the rear seats). The logs showed almost no use. Not worth the cost / mass for everyone when hardly ever in use.
Prices are rising due to price pressure from the industry-wide supply chain Raw materials in particular.
– Elon Musk (@elonmusk) May 31, 2021
Tesla vehicle price changes
So far this year, Tesla has already changed the price of its vehicle three times. In February, the company slashed prices for the Model 3 and Y lines, with the cheapest vehicle starting at just under $ 37,000. Additionally, in March, Tesla revised its pricing policy and increased the price of its cars. Now the Model 3 Standard Range Plus, which was the cheapest vehicle offered by the company before, cost $ 37,490. The prices of the S, Y and X models remained virtually unchanged.
Now Tesla has changed the prices again. According to the report of Electrek website, Tesla Model 3 Standard Range Plus and Model 3 Long Range AWD both added $ 500 to their price. The price of the Tesla Model Y Long Range AWD has also increased by the same amount. This update is due to a significant increase in commodity prices as well as other tensions within the automotive industry. In April, Elon Musk said he had problems with the supply chain. Now the business has the same problems.
The supply chain problem isn’t the only problem Tesla has to deal with. As we previously reported, Tesla has delayed production of its new Berlin Gigafactory due to battery issues.
Tesla Share Performance (TSLA)
Following the news, Tesla stock rose at the start of trading. Yesterday it closed at $ 625.22, but today it added 0.73% to $ 629.77. Tesla’s market capitalization is $ 602.29 billion. Over the past 12 months, TSLA stock has jumped 248%. However, since the start of the year, it is down 11.40%.
Tesla’s stock price has a lot to gain, according to many analysts. For example, Colin Rusch, an analyst at Oppenheimer who has the most optimistic view of Wall Street, set a price target of $ 1,036 in 2021 for Tesla. Robert W. Baird predicts $ 736.00 for Tesla shares. Goldman Sachs Group (NYSE: GS) analysts set their price target at $ 860.00. There are currently 11 sell ratings, 12 hold ratings, and 12 buy ratings for the stock. The average consensus rating for Tesla stock given by Wall Street is “hold”.
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