Continuing the upward trend in electric vehicle prices due to rising raw material prices, Tesla raised the price of the base Model 3 in Germany from just under €42,990 to €49,990. This means an increase of up to €7,000.
The price increase followed several other price hikes in March. Tesla has also previously raised the price of their electric vehicles in the United States and China. After that, Tesla also increased the price of the Long Range and Performance Model 3 and Model Y in Germany.
The increase in the price of the base Model 3 in Germany puts it in the luxury car price range in Germany. This makes potential buyers
An increase in the price of a basic Tesla Model 3 in Germany means potential buyers are ineligible for the government’s highest electric vehicle subsidy. Base Model 3 customers will then lose €1,500 in subsidies due to this price increase.
The increase in the price of Tesla’s electric vehicles is related to the increase in the cost of raw materials such as nickel for its lithium-ion battery cells. One of the reasons for the increase in raw materials is the Russian invasion of Ukraine
Last month, Tesla CEO Elon Musk tweeted a warning about significant inflationary pressures in raw materials and logistics.