The price for a Tesla (TSLA) may be going up again as the automaker confronts surging inflation.
“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,” Wedbush tech analyst Dan Ives said on Yahoo Finance Live.
The closely followed tech analyst has an Outperform rating and $1,400 price target on Tesla.
Tesla shares fell slightly on Monday to $782 amid broader pressure on tech stocks.
Ives’ suggestion of a Tesla price increase comes hot on the heels of CEO Elon Musk warning anew about inflation.
“Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics,” Musk said in a tweet over the weekend.
Musk followed that tweet up by pointing out that many companies are feeling severe inflationary pressures as commodities prices rise along with the Russian war on Ukraine.
For electric vehicle makers such as Tesla, skyrocketing nickel prices — a key component in batteries —is putting added pressure on costs.
Tesla recently increased its pricing for the Model 3 and Model Y long-range models by a $1,000, reports Electrek. The company raised prices consistently in 2021, Electrek notes.
Adds Ives, “That’s something [inflation] that these companies are not going to absorb. They are going to pass that forward, which just speaks to the supply constrained environment.”
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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Source: https://finance.yahoo.com/news/tesla-will-probably-hike-prices-soon-because-of-inflation-says-analyst-153854335.html