Why Tesla Cars So Expensive in UK and USA?

why tesla is so expensive in uk and usa

Invented, re-invented, electric. Electric cars are the future of transportation. Tesla is one such brand that has brought about innovation to the automobile industry all over the world.

Tesla is not just some luxurious brand that only the celebrities want and have in their possession; Tesla is an innovation in itself.

It is a well-known fact that Tesla cars so expensive. The prices of Tesla models vary according to several factors. Tesla prefers to manufacture its components mainly in locations where there are high sale rates that are in the USA and UK. Hence the prices of these vehicles are slightly more expensive in these regions.

You might be wondering “what are the other alternatives of Tesla and what are their respective prices”? Given below is a list of all the cars with their prices for easy comparison:

S.No.Car BrandBrand ModelPrice
1TeslaTesla Model S Plaid$129,990
2Mercedes- BenzMercedes-Benz EQS$102,310
3PorschePorsche Taycan$82,700
4BMWBMW Ix$85,675
5FordFord 150 Lightning$87,995
6Lucid AirLucid Air$80,880
7VolvoVolvo C40 Recharge$50,441
8PolestarPolestar 2$50,110
9RivianRivian R1S$75,881
10BYTONBYTON M-Byte$46,444
11Tesla Tesla Cybertruck$49,000 to $78,000 (expected price)
12Audi Audi Q4-E-Tron$51,200 (expected price)
13CadillacCadillac Lyriq$65,881
14GenesisGenesis Electrified G80$43,880
15GMC GMC Hummer EV$80,447
16LotusLotus Evija$2M or above
17MaseratiMaserati MC20$2M or above
18ChevroletChevrolet Silverado EV$41,550
19FiskerFisker Ocean$39,652
20Lexus Lexus -RX$46,200
21Toyota Toyota bZ4X$66,992
22TeslaTesla Roadster$2M or above

Wandering through the previous table you must have learned a great deal about the prices of Tesla and its alternative automobile brands. However, it is undeniable that Tesla models are unexpectedly expensive.

Let’s dive into the details before discussing the other possible reasons behind the rising prices of Tesla cars in the USA and UK.

Reason 1: What Elon Says About “Why Tesla Cars So Expensive”

According to the recent statistics it is revealed that over a recent couple of years Tesla has been increasing its Model 3 and Model Y prices.

Upon being questioned about such skyrocketing prices of the Tesla models, the CEO of the company says

 “Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially.”

Elon Musk

As expected from the CEO, it was a very professional way of answering such a trivial question. However, Elon Mask never disclosed any further details about the list of raw materials; that actually affected the price rates over the past few months. This rice in the price of raw materials gradually led to the consequent seven price changes over a very short period of time.

Let’s start with the cheapest models of Tesla. Like by the month of February, one of the cheapest models of Tesla i.e. Model 3 Standard Range Plus went through a slight price rise from $37000 to $40000. This was a more than 3 percent increment in the price.

Coming up next was the Model Y Long Range AWD which was previously showcasing a price tag of around $50000 has started to sell for about $52000. Although the price changes were negligible comparatively Tesla never confirmed any logical reasons behind these price changes.

Reason 2: Innovative Designing

Innovative Designing be the reason why tesla is so costly

Any kind of innovation in technology means there is a high probability of high-quality raw materials being used in manufacturing. In fact, Tesla uses the best materials that don’t only give the model a  fine look but also ensure high protection to the driver and the riders.

Tesla always tries their best to make changes to the present models to make it both a better and safer riding medium to the users. This could be one of the reasons for the price hike in the models over the years.

Reason 3: Electrical Vehicles are Indeed Costly

The main thing about Electrical cars is their energy-storing properties. For that purpose, they need big batteries, and big batteries are costly. 

For the recent few years’ lithium-ion batteries are being used for electrical cars. However, Tesla is continuously searching for ways to replace them with something that is far better and can store energy for a longer time. Such new initiatives gradually lead to high prices.

Reason 4: In-House Research and Development

in house research and development could be the reason  why tesla cars so expensive

Like most of the other companies of automobiles, Tesla doesn’t have a stockpile of devices or motor parts that can be reused over the next years.

On the other-hand Tesla, company needs to design and make every tiny component for different car models and so the rise in the price of the models.

Cashless technologies like these are so technically advanced that it is almost impossible to outsource them to locations where they are cheaper to manufacture.

Even most of these technologies are patent protected and hence too important to indulge in any kind of collaboration with other companies and hence the rise in the price.

Reason 5: Disruptive Supply Chains

Disruptive Supply Chains of tesla equipment

As we know most of the motor parts used in the Tesla Models are very advanced hence they can’t be outsourced for mass production. Tesla wishes to make the best electrical vehicles, for that they need the quietest and the best motors for proper functioning.

However, for making such parts, it takes a lot of time and cost thus it ultimately results in higher demand compared to low supply. Tesla has a long waiting list for several models. This long manufacturing time affects the price ultimately.

This merely affects extensively from the COVID-19 breakdown.

Reason 6: Size of Company

Tesla is not a century-old company like any other automobile company that is already present in the market. Although being a newcomer Tesla has risen to be one of the tough competitors to the luxury brands.

Being a company Tesla doesn’t have a stockpile of raw materials. They insist on manufacturing each part separately just so as to make it one of the best automobile companies in the long run, which affects the prices.

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