Tesla likely to raise prices again in September as supply chain shortages ease: Report

giga berlin general assembly
Credit: Tesla

Tesla, along with all other automakers, have suffered through supply chain shortages that have hampered production for over a year. At least some of those shortages may be easing, allowing Tesla to increase production and shipments out of its factories, but as a side effect, Tesla may increase the prices of some of their vehicles next month.

According to industry sources in China that spoke with DigiTimes, Giga Shanghai is currently running at full volume production after factory upgrades last month. This is despite some of their suppliers suffering from production issues due to power restrictions amid a record-breaking heatwave in the southern region of the country.

Additionally the same sources explained that Giga Texas is currently running at 70% capacity utilization, and production should increase at both Giga Texas and Giga Berlin in the coming months as supply chain shortages ease.

However, as component suppliers have been able to increase production, they have also been able to negotiate higher prices for their parts from Tesla. This in turn could lead to another price increase from Tesla in September, with industry observers speculating it will be in the $1,000 to $2,000 range.

Tesla last adjusted their prices on their entire vehicle lineup in June, raising prices as much as $10,400 for the Model X in Canada, to just a $1,600 bump for the Model Y Performance.

After successive price increases that have pushed the Model Y to be $17,000 more expensive than it was last year, Elon Musk said the company may be able to lower prices as inflation calms down. Musk predicted that inflation may have peaked in August.

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