Wedbush analyst Daniel Ives says Tesla could pass inflation costs off to the customer, with expectations that the automaker will raise their prices within the next two weeks, according to Yahoo Finance.
In a statement on Yahoo Finance Live, Ives said, “I think they will announce in the next two weeks probably another price increase. They still have the ability to pass that [inflation] on to the consumer, very similar to Netflix, Amazon Prime and other stalwarts.”
Ives currently has a $1,400 price target on Tesla along with an Outperform rating, noting earlier this month that Tesla’s new Gigafactory Berlin gives the company a huge competitive advantage.
Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics
— Elon Musk (@elonmusk) March 14, 2022
The news also comes just a day after @ElonMusk said that Tesla and SpaceX are seeing significant inflation pressure for its materials and supply chain logistics.
Tesla increased the prices of select Model 3 and Y units by $1,000 last week, after increasing them another time just months prior. The price hikes affected the U.S., Canada, Europe and China.
Nickel prices have surged in recent weeks and are expected to increase the price of electric vehicles (EVs) in general since most use a high volume of nickel for their batteries.
Despite long delivery wait times amidst high demand and major supply constraints, Tesla Model 3 and Y orders with the Full Self-Driving package are being prioritized and are expected to get faster deliveries.
