Image by David Zalubowski // AP

More and more auto companies are increasing the prices of their cars, mainly because of inflation and problems with delivering essential car parts. Tesla has made the news this week, once again, for suddenly rising prices of select U.S. models. The company’s popular car, the Model Y, increased by about 5%, approximately $3,000. The largest price increase is for the Model X Dual Motor with all-wheel-drive, which increased $6,000, from $114,990 to $120,990.

Car companies, especially EV makers, have recently felt financial pressures as raw materials prices have increased. The most significant problem with raw materials is not the price increase but the sudden loss of availability, like the global shortage of semiconductors necessary for electric vehicles to function.

Elon Musk, the CEO of Tesla, has commented various times on the current state of the global economy and how it affects the production of electric vehicles. Lithium is necessary for many cars, and the price has recently increased. Elon Musk has raised the overall costs of their long-range cars, and he plans to cut about 10% of salary-based workers.

This massive lay-off has many employees on edge. Ex-employee LinkedIn posts have resurfaced throughout the week and gone viral, including creative designers, directors, and management positions. Tesla will likely continue making significant moves to protect its company from inflation.

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