Considering what a mess going on in the supply chain of other car manufacturers, Tesla is step ahead of everyone here as well. Matter of fact, flexibility allowed Tesla to get couple steps ahead of other EV competitors. For several months now, Tesla has been increasing the prices of its Model Y and Model 3 vehicles without giving any clear explanations. It was not until May 31 that Tesla boss Elon Musk finally decided to share with the public the reasons for Tesla’s having made numerous adjustments in the prices of its Model 3 and Model Y. Elon Musk claimed that the prices of the two Tesla models had been increasing because of supply chain issues that have the entire auto industry. Tesla CEO provided the long-sought explanation during a Twitter interaction with one of Tesla fans who was pretty disappointed with the automaker’s having hiked Model Y prices alongside with getting rid of some of the features (for instance, radar and front passenger lumbar support). "Really don't like the direction Tesla is going, raising prices of vehicles but removing features like lumbar for the Model Y," the Tesla enthusiast wrote in his post. When responding to this post, Mr. Musk took the opportunity to give a reason as to why the company has removed lumbar support in the front seats of Tesla Models Y and Model 3. He claimed that the lumbar support feature had been removed from the front passenger seats of both Model Ys and 3s since the vehicle logs indicated that the feature had been rarely used. “Not worth the cost/mass for everyone when almost never used,” Musk stated. It seems that you have nobody but your passengers to blame for the loss of this particular feature. Elon Musk’s recent comments were in line with what he talked about just a few months ago. During the first quarter 2021 earnings call in April, he told investors that supply chain challenges had affected Tesla production in terms of availability of parts and materials — forcing the company to scale down production or even shut down temporarily. “Some of the most difficult supply chain challenges that we’ve ever experienced in the life of Tesla and same difficulties with supply chain, with parts — over the whole range of parts. Obviously, people have heard about the chip shortage,” Musk said. Earlier this week, there were rumors that the automaker had to put about 10,000 Model 3 and Model Y electric cars on hold due to missing parts. The Model 3 and Model Y vehicles were reportedly produced at the Fremont factory in California. While Tesla has been no stranger to several price updates throughout the years, the EV maker clearly ramped them up with over six price changes on Model 3 and Model Y in just 5 months. The price changes - normally in increments of $500 – are quite significant when you sum them up together. More about this in the video!

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