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The Tesla boss: The cars are “embarrassingly expensive”

Large parts of the car industry are now experiencing tough times. The corona pandemic strongly affected both production and sales. In the wake of this came both log plug problems and parts shortages. And now the war in Ukraine also affects several areas.

One of those who notice this is Tesla. They have impressively managed to keep their production high and have opened new factories in both China and Germany. But Tesla is well aware that both raw materials and parts have increased significantly in price.

This has meant that they have had to raise the prices of their cars several times, also here in Norway. And Tesla CEO Elon Musk is as usual outspoken when he comments on this:

Hope to be able to cut the prices

– We have increased our prices several times. To be honest, they are at embarrassing levels. But we’ve had a lot of problems with subcontractors and production and inflation is absolutely wild, Musk said when the company presented results for the second quarter.

– I think inflation will fall towards the end of the year. I hope – but this is not a promise – that at some point we can reduce the prices a little bit, added Musk.

Musk confirmed: Tesla was two days away from bankruptcy

Tesla has really ramped up production in the last couple of years. The factory in Fremont in California has also been followed by factories in China and Germany. Photo: NTB

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More expensive in Norway

Incidentally, the price increases do not appear to have put any major damper on demand. Tesla is struggling to keep waiting times down, while at the same time they are working hard to increase production at their factories.

Here in Norway, the Model 3 had its last price increase in March. Then the entry-level model went from NOK 369,900 to NOK 409,000. At the same time, the prices of the Model Y Long Range increased, from NOK 534,900 to NOK 549,900. This has later increased by a further NOK 10,000 and now costs from NOK 559,990.

This car started the Tesla adventure

Model Y is Tesla's new bestseller in Norway, they have delivered over 6,000 copies so far this year.

Model Y is Tesla’s new bestseller in Norway, they have delivered over 6,000 copies so far this year.

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Model Y is the big seller

After the first six months of the year, Tesla is by a good margin Norway’s largest car brand. 8,062 cars give a market share of an impressive 11.8 per cent. This is almost 1,500 more cars than Volkswagen in second place has delivered.

Model Y has now taken over as the real big seller. A total of 6,130 cars have been registered so far this year. For the Model 3, the figure is 1,918. These two thus account for a total of 8,048 cars. This means that Tesla has not sold more than 14 copies together of the former best sellers Model S and Model X here at home.

Not long ago Tesla crisis – now they are making billions

The article was first published on Broom.no

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