Elon Musk has called Tesla’s prices embarrassing. The top leader of the popular electric car brand points out the main reasons why, for example, the access version of the Tesla Model Y has far exceeded the €65,000 barrier.
Tesla, like the rest of the car brands, must deal with the many problems that have plagued the automobile industry in recent times. Some challenges that have forced the popular electric car firm to revise the prices of each of its models upwards. A measure that has been applied on several occasions. Moreover, Elon Musk himself, CEO of Tesla, has come out against these price increases to address the situation that the company is going through.
The top leader of Tesla has not hesitated to describe current prices as embarrassing of the range. Musk noted that the automaker’s overall pricing is “at embarrassing levels.” And it is enough to take a quick look at its best-selling model in North America, the Tesla Model Y. Tesla’s smallest SUV, in its access version, has a starting price that far exceeds the €65,000 barrier .
Elon Musk points to the culprits of Tesla’s price hike
Beyond pointing out that Tesla’s current prices are shameful, Musk has directly assured the main causes of this complicated situation. The reasons why the American brand has had to revise prices up of their models is related to the supply chain crisis and, what is equally relevant, the demand for constant rise.
“We have increased our prices several times. Frankly, they are at embarrassing levels. But we’ve also had a lot of supply chain and production shocks and we’ve got crazy inflation,” Musk said.
The CEO of Tesla has also commented that they hope not to review the prices of the range again in the remainder of the year and, if necessary, to be able to apply a reduction: “I think that inflation will decrease towards the end of the year. I am hopeful, and this is not a promise, but I hope that at some point we can reduce the prices a little bit.”
Video test of the Model 3, the most popular Tesla electric car in Europe
The prices of the best-selling Tesla
At this time, if we go into the Spanish Tesla configurator we will find that, the Model 3 has a starting price of €51,990 with an estimated delivery for the first quarter of 2023, and for its part, the Model Y does the same from €65,990 and delivery would take place sometime between the end of this year and the beginning of next.
Musk has also highlighted that Tesla’s production capacity is another problem: “Right now, our problem is very much production.” In the first half of 2022, the brand manufactured a total of 563,987 vehicles and expects to close this year with a 50% increase compared to the 930,422 electric cars manufactured in 2021.