The rising costs of nickel and lithium, two key components for electric vehicles, have begun to hit the sector with industry leader Tesla Inc (NASDAQ:TSLA) raising the prices of several vehicle models as a result. Here is a look at what the least expensive Tesla vehicle now costs.

What Happened: Over the past two weeks, Tesla raised the prices of vehicle models in the U.S. and China. The move comes as a reaction to rising commodity costs.

The Model Y had a $2,000 price increase with a new starting price of $62,990.

The Model S saw a $5,000 price increase, taking the starting price just under six figures at $99,990.

The Model 3 with rear-wheel-drive had a $2,000 price increase. Other Model 3 versions saw larger price increases.

With the price increases, the cheapest listed vehicle for sale by Tesla is now the Model 3 with rear-wheel-drive. The vehicle’s sale price starts at $46,990 before additional features. The price point is also before certain credits are applied.

Related Link: Tesla Rushes To Hike Prices Of Some Model 3, Model Y Cars In US Amid Surging Nickel Prices 

Why It’s Important: The rising costs of electric vehicles come as oil and gas prices have risen, leading to an increased debate between the costs of traditional automobiles and electric vehicles.

Despite the rising costs of Tesla vehicles, Electrek previously reported the electric vehicle giant has seen increased registrations due to the higher gas prices.

The opening of the Tesla Gigafactory is expected to lead to additional production and deliveries going forward, which could help with pent-up demand. 

Delivery dates for many Tesla models have been pushed later into 2022 and early 2023, suggesting the company still has strong demand.

Tesla dominates the U.S. electric vehicle market with a reported 70% market share in 2021.

TSLA Price Action: Tesla shares were up 0.048% to $921.16 on Monday at market close.