Tesla Model 3 prices raised following jump in price of nickel

An increase in the international price of nickel has resulted in prices of Tesla Model 3s and Model Ys increasing around the world, including New Zealand.

Nickel is one of numerous commodities relevant to the automotive world that has increased sharply this month, in part as a result of global reaction to the war in Ukraine.

Locally, the Model 3’s entry level grade (formerly known as the Standard Range) is the only model to have its price changed.

Its retail price has increased from $66,900 to $68,900, a $2000 increase. The Long Range and Performance variants are static at $82,900 and $95,900, respectively.

This change ends a streak of domestic price discounts for the model, helping it become the country’s most popular electric car last year.

In the US, the entry-level Model 3’s pricing is unchanged, with the Long Range instead being the model to go up (its pricing bumped up by US$1000).

In China, where our entry-level Model 3s are built, Model 3 and Model Y pricing has increased by approximately US$1500.

Russia is the third largest producer of nickel in the world. Nickel is commonly used in HEV, PHEV, and BEV batteries, across the marine industry, and in the production of coins, nails, and pipes.

Tesla’s pricing tweaks follow steeper price increases by the firm’s rivals, Rivian.

The start-up firm recently announced significant price increases of more than US$10,000 to its R1T and R1S models, with the company stating the changes were due to increased production costs.

Following backlash from customers, the firm reversed the price hike for those with outstanding orders and for those who had cancelled their order.