Tesla Inc TSLA raised the prices of some of its Model 3 and Model Y vehicles late Thursday. This is the third such price increase by the electric vehicle maker in a month.
What Happened: The Palo Alto, California-based automaker has quietly updated U.S. its website to reflect the increase in prices by $500-$1,000, depending upon the make.
The Price Hike: The Model 3 Standard Range Plus is $500 more expensive and is now priced at $38,490, according to the company’s U.S. website. In California, where new electric vehicles enjoy a $1,500 Clean Energy rebate, the same car is priced at $36,990.
The Model 3 Long Range edition and Model Y Long Range prices have been raised by $500 to $47,490 and $50,490 respectively.
See also: How to Invest in Tesla Stock
The Model 3 Performance edition has received the steepest hike of $1,000 to $56,990. It was priced at $54,990 at the beginning of the year.
There is no change in prices of Performance editions of Model 3 and Model Y, and Model S and Model X.
Why It Matters: Tesla’s price hike comes at a time when President Joe Biden’s $174 billion electric vehicles push, which is part of the $2.3 trillion infrastructure plan, is expected to result in tax credits expansion to $10,000 from $7,500 now.
The electric carmaker, like other global auto companies, are seeing their production hit by the ongoing semiconductor chip shortage as well.
The Elon Musk-led company reported delivering 184,800 EVs in the quarter and left analysts divided on the significance of the numbers.
Price Action: Tesla shares closed 1.91% higher at $683.80 on Thursday
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