Sticker shock: Tesla increases prices again amidst rising metal prices

Telsa has announced it will increase the cost of all its electric vehicle models for the second time in the last several days. According to Inside EVs, the price hikes mean the Tesla Model 3, the most affordable Tesla, now starts at $46,990.

The company did not give a specific reason for the price increase, but reports have speculated that surging costs for metals that are essential for EVs, such as nickel, cobalt, and copper, are behind the latest change to the sticker price.

Minnesotans need to understand that EVs use much more metal than internal combustion engines. According to the International Energy Agency, EVs require more than four times more critical minerals than traditional cars, and the United States is heavily dependent upon imports of mined and refined metals for our domestic needs.

If governments continue to mandate EVs, increasing demand while impeding mining the metals needed to make these vehicles (i.e., suppressing supply), then EV prices will necessarily increase.

To combat supply constraints, the United States needs policies designed to facilitate the mining and refining of metals domestically. Minnesota has the largest undeveloped deposits of copper and nickel in the world and some of the most stringent environmental standards.

We need to demonstrate leadership by responsibly developing these mineral resources while creating 14,800 new jobs in our state and protecting the environment.