Electric-car maker Tesla (TSLA) is raising prices for its Model Y SUV and Model 3 long range sedan by $1,000 U.S. each, according to its website.
The company increased prices for the most affordable versions of its Model 3 and Model Y about a dozen times last year in the U.S. Tesla also said it now plans to increase prices for some of its China-made Model 3 and Model Y vehicles by 10,000 yuan ($1,582.40 U.S.).
The U.S. price of the Model Y long range car has now jumped 20% from January 2021.
The latest price hikes come amid surging raw material costs, made worse by Russia’s invasion of Ukraine, and could set back the dream of Tesla Chief Executive Officer (CEO) Elon Musk to roll out more affordable electric vehicles.
Rising prices for nickel, lithium and other materials threaten to slow and even temporarily reverse the long-term trend of falling costs of electric vehicle batteries — the most expensive part of EVs — hampering the broader adoption of the technology.