When a Tesla fan questioned the price increases on Twitter, Musk responded that the price increases were beyond its control.
“Prices increasing due to major supply chain price pressure industrywide,” he tweeted. “Raw materials especially.”
Computer chips are not the only raw material seeing shortages and price increases. Prices for lithium, a key material used in EV batteries, have more than doubled in trading markets. Cobalt, another key material for batteries, is also sharply higher though it has retreated from a high earlier this year.
What Tesla is paying for those raw materials under its supplier contracts is unknown. The same is true for metals used elsewhere in the car, such as steel, aluminum and copper, which have also seen in prices traded in public markets rising. Even tires are reported to be in short supply throughout the industry.
Tesla is trying to control costs where it can. The company recently removed features in the Model 3 and Model Y, such as lumbar support for the front passenger seat. Musk said that Tesla data shows that the feature is not being used very often, and thus it was not worth the additional cost or weight.
Tesla has not yet raised the prices of its two most expensive cars, the Model S and Model X SUV.