Blog Musk Says Price Increases Related to Cost of Raw Materials

Tesla Chief Executive Elon Musk says the increasing prices for his company’s electric vehicles are due to rising materials costs.

Tesla has now increased the price of the vehicles five times in the last few months. When a Twitter user complained, Musk offered an explanation.

“Prices increasing due to major supply chain price pressure industry-wide,” Musk said on Twitter. “Raw materials especially.”

Musk also elaborated on the company’s decision to remove lumbar support from the passenger seat of Model 3 and Model Y vehicles.

“Logs showed almost no usage,” Musk said. “Not worth cost/mass for everyone when almost never used.”

https://twitter.com/x/status/1399492488612691973

Musk mentioned supply chain issues during Tesla’s Q1 earnings call.

“So Q1 [had] some of the most difficult supply chain challenges that we’ve ever experienced in the life of Tesla and same difficulties with supply chain, with parts — over the whole range of parts,” Musk said on the call.

 

[tivoboy]

Unfortunately, I think some of the price increases now are due to the federal tax credits being re-instated probably this year even for Tesla.

 

[qdeathstar]

I don’t think he could lie about that since it is pertinent to the financials of the stock...

I highly doubt it is related to a bill that might pass, eventually.

 

[Gulfcoaster]

I think we as customers should have the choice to chose what options we want in a car though. If we want passenger lumbar support, charge us for the stand alone option, its a win/win for all involved!! Don't strip it off and make it totally unavailable.

 

[golferguy]

How does Tesla know if Lumbar support is used? We set ours over 2 years ago and never touch the control. Is that non use?

 

[Yinn]

How does Tesla know if Lumbar support is used? We set ours over 2 years ago and never touch the control. Is that non use?

Yes. That's the silly part. He specifically states the moving part. The majority of us aren't going to move the lumbar once we're in a comfortable position. So what's the solution? Remove it.

Up next, logs will show that moving seats are rarely used...

 

[Lloyd]

Once you have the lumbar set for you, it rarely needs to be moved. The point is that you need to move it.

 

[father_of_6]

I think we as customers should have the choice to chose what options we want in a car though. If we want passenger lumbar support, charge us for the stand alone option, its a win/win for all involved!! Don't strip it off and make it totally unavailable.

The issue with that is production throughput... by making the *same* car with the same options, they can crank them out much faster. It's the reason they add heating elements to *all* seats, even if that option isn't enabled on the car.

 

[AdamMacDon]

How does Tesla know if Lumbar support is used? We set ours over 2 years ago and never touch the control. Is that non use?

Also from the wiring diagrams, it seems like the lumbar settings don't even go through the ICE, so I doubt this is logged anywhere. I don't think think it's possible. At least in my 2019. A good example of this, lumbar settings don't save/restore from driver profiles.

 

[father_of_6]

Probably these topics are related... they removed the lumbar support to avoid *another* price increase

Personally, they could've taken the driver's side lumbar out too... don't care about it.

 

[Omniblast]

In my industry we had to account to increased prices for steel across the board for new construction, this includes material for example, jacketed piping, which has shown to have a increase in the coming year with long lead times for material purchases and fabrication as well.

 

[Glenn T]

Unfortunately, I think some of the price increases now are due to the federal tax credits being re-instated probably this year even for Tesla.

Any idea when those federal incentives will kick in?

 

[tivoboy]

Any idea when those federal incentives will kick in?

Could be as early as August, possibly later this year.. could also possibly be retry-active to some earlier point in the year 2021.

 

[dsal24]

How does Tesla know if Lumbar support is used? We set ours over 2 years ago and never touch the control. Is that non use?

I would assume:

1.) They're able to identify what % of driver profiles have lumbar support set to default vs moved at all.

2.) Assuming my first point is correct (I'm not 100% sure), I would also assume you would be considered someone who has used lumbar support, and not someone who hasn't.