Tesla hikes prices on all cars, with cheapest Model 3 now nearing $50K

Enlarge / Tesla Model 3. (credit: Salwan Georges/The Washington Post)

Tesla raised prices last night on every model it sells. The move comes just a week after the company increased prices for its long-range battery packs by $1,000. The new increase means that the cheapest Tesla, a Model 3 with rear-wheel drive, now costs $46,990 before taxes and fees, a jump of $2,000.

CEO Elon Musk tweeted that the company is seeing significant recent inflation pressure in raw materials and logistics." Prices are up in several sectors of the economy, of course, though economists are debating what is driving them higher. For electric vehicles like Teslas, the main culprits today could be nickel and cobalt prices, which have shot through the roof in recent weeks, though Tesla has also made a habit of increasing prices in recent months.

Both nickel and cobalt are key elements in the lithium-ion batteries commonly used in today's EVs. Nickel helps boost a cell's energy density, while cobalt stabilizes the microscopic structure. Battery chemistries that use the metals are often referred to according to the proportion of metals they use. A common one is NMC, which stands for nickel, manganese, and cobalt, while Teslas often use NCA, or nickel-cobalt-aluminum. Tesla doesn't disclose its NCA ratio, but other companies use NMC chemistries with ratios of 8-1-1, 6-2-2, or 5-3-2.

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