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Elon Musk is saying supply issues are why Tesla prices keep going up

Semiconductors are basically the toilet paper of the manufacturing world at this point.

tesla model 3 on road
Image: Unsplash

It’s no secret that some Tesla models, like the Model 3 and Model Y, have seen price increases in 2021. Now, Elon Musk is giving some explanations as to why people in the US are seeing these price increases.

The news comes from, not surprisingly, Twitter, where Musk responded to a tweet regarding US demand for Tesla electric vehicles. In his response, Musk notes that supply issues are the main reason for the price increases, comparing the shortage to that of toilet paper.

Essentially, Musk is saying that companies are freaking out about shortages regarding microcontroller chips and then buying up mass amounts of supplies to make sure they are covered in the future.

Tesla is not the only company feeling the pressure of supply shortages in things like semiconductors. Nintendo is dealing with the issue, as is Apple, and there are certainly many other companies that are struggling to produce products right now.

While Musk is optimistic that the shortage will not be a long-term issue, Gartner analysts have said that the issue could last into Q2 of 2022.

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