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Tesla hikes prices of Model 3, Model Y amid chip shortages

Mount Equity Group Tokyo, Japan > News > Business > Tesla hikes prices of Model 3, Model Y amid chip shortages

Tesla is once again jacking up prices on its most popular electric cars, tacking on thousands of dollars as microchip shortages continue to spark production hiccups.

The electric carmaker helmed by Elon Musk has hiked prices of its Model 3, its least expensive model and the world’s best-selling plug-in car, by $3,000 so far this year — a more than 8-percent increase.

The standard Model 3 sedan was selling for $39,990 on Friday, up from $39,490 earlier this week and $36,990 in late February, according to archived versions of the company’s site.

The Model 3’s pricier “long range” model, meanwhile, was selling for $48,990 on Friday, also up $500 from earlier in the week and $3,000 since February.

The automaker could raise its prices by an additional 3 to 5 percent this year, Dan Ives, managing director and tech analyst at Wedbush Securities, told The Post.

“Because of chip shortage as well as production issues, Tesla now is really starting to see more surge of demand and that’s resulted in price increases rather than decreases,” Ives said. “Tesla continues to be in a massive position of strength.”

Price of the Tesla Model 3 (base) in April 2021 (top) vs May