Model 3 Model Y News

Tesla Model 3 and Model Y get their first price increase of 2022 as nickel prices rise to an all-time high


Tesla Inc. (TSLA) has made the first price increase of this year for its smaller car segment i.e. Model 3 and Model Y. An increment of $1,000 has been made to all Model Y variants and to the Model 3 Long Range variant.

The base and top-end (Performance) variants of the Model 3 have been unaffected in today’s price increase (new prices below).

This price hike by Tesla has come at a time when nickel prices have surged to an all-time high. Nickel is an important ingredient used in making electric vehicle batteries. Nickel is used to make the cathode part of an EV battery cell.

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After a record surge in the nickel commodity price on Tuesday (a phenomenal hike in percentage in the last 145 years), London Metal Exchange (LME) stepped in to halt the trading for a few days. The Russia-Ukraine conflict is the major catalyst in the record price increase of nickel.

Russia has banned the export of Nickel in response to economic restrictions placed by the United States and its allies. In 2021, Russia accounted for about 9.2% of the world’s total nickel mining production and holds a reserve of 7.5 million tonnes of this metal.

With Tesla producing a high number of Model 3 and Model Y cars per day at its Fremont and Shanghai factories, these are the cars most affected by the scarcity and price hike of nickel.

Model Y production start at Giga Texas and Giga Berlin is getting closer day by day and Tesla will require more and more batteries and nickel in the coming months.

1-year price graph of Nickel as of Mar 10th, 2022. Source: Insider.

New Tesla Model 3 Prices

The last time Tesla made an increase in the price of Model 3 was back in November 2021. This time, Tesla has increased the price of the Model 3 Long Range AWD price by $1,000.

The new price of the Model 3 Long Range AWD is $51,990.

Tesla Model 3 prices after the increase of $1,000 to the Long Range AWD variant (as of March 10, 2022). Credit: Tesla, Inc. (TSLA).

New Tesla Model Y Prices

Tesla has increased the price of both Model Y variants by $1,000. This electric SUV by the automaker is based on the same platform as the Model 3 and they share the same battery pack.

When Giga Texas and Giga Berlin start producing Model Y with the structural battery pack, both of these cars will differ significantly in this regard.

The new prices of the Model Y variants are as follows:

  • Tesla Model Y Long Range AWD: $59,990
  • Tesla Model Y Performance: $64,990
Tesla Model Y prices after the increase of $1,000 to the Long Range AWD and Performance variants (as of March 10, 2022). Credit: Tesla, Inc.

Next update: Tesla increases prices of Model S, 3, X, and Y again

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Video: Analysis of Tesa and Rivian price increase (inflation and demand).

By Iqtidar Ali

Iqtidar has been writing about Tesla, Elon Musk, and EVs for more than 3 years on, many of his articles have been republished on CleanTechnica and InsideEVs, maintains a healthy relationship with the Tesla community across the Social Media sphere. You can reach him on Twitter @IqtidarAlii