Tesla Motors CEO Elon Musk said late Monday that the price of his vehicles is going up due to supply chain issues that have slammed the automobile sector.
“Prices increasing due to major supply chain price pressure industrywide. Raw materials especially,” Mr. Musk said in response to a tweet complaining about the electric vehicle company’s direction.
The complaining Twitter user said Tesla is “raising prices of vehicles but removing features like lumbar for the Model Y.”
Mr. Musk explained that the company removed the lumbar support for the passenger seat in some models due to data showing it was rarely used, so it wasn’t worth the cost, before citing general price pressures.
Tesla increased its Model 3 and Model Y prices in May, the fifth incremental increase over the past few months, according to the Electrek website.
Mr. Musk told investors in April that the company was encountering a chip shortage, as supply chains struggle to keep up with electric vehicle ambitions.
The issue reached the attention of President Biden. He is pushing to increase the domestic production of semiconductors and batteries without China’s help.
He recently touted a new battery-making partnership between Ford Motor Co. and SK Innovation, a South Korean company, that will turn out power from a plant in Georgia as part of the administration’s $174 billion electric-car initiative.
On Tuesday, 7-Eleven stores announced it would build 500 electric vehicle charging ports at 250 of its stores in the U.S. and Canada by the end of 2022 — up from the 22 charging stations it has at 14 stores in four states.
“7‑Eleven has always been a leader in new ideas and technology to better serve the needs of our customers,” 7‑Eleven President and CEO Joe DePinto said. “Adding 500 charging ports at 250 7‑Eleven stores will make EV charging more convenient and help accelerate broader adoption of EVs and alternative fuels. We are committed to the communities we serve and to working toward a more sustainable future.”