The Real Reason Why The Tesla Model 3 Is Now More Expensive Than Ever

[{"selector":"#anim-dae27a00-4c4f-48de-b5b1-0b6cd2c7f6db [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.179687404002955%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-1d43340b-df40-4310-871e-0ec535fbd74f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-786efa0c-a74b-4313-81df-d09aef382e9f","keyframes":{"transform":["translate3d(-119.34426%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The Tesla Model 3 has seen its prices steadily rise over the past year, making it one of the most expensive electric vehicles on the market.

[{"selector":"#anim-f1a4b603-3de1-4d26-92c5-193f137b7b86 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-17.752848807174544%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-8d413437-afe6-47ff-b2f0-daef26949816","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-21436b71-9e2c-4b48-80b2-0a069309d866","keyframes":{"transform":["translate3d(-117.70492%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The main reason for this is due to an increasing demand for the vehicle and limited availability.

[{"selector":"#anim-d8ec9ad6-d83f-4eb6-8d1b-3f9b2be1d06c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.24302443975483%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-b3b42f23-d4fd-4525-a435-8ceac8bb2c4d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-36062cc2-15b8-4298-9d16-86e05b5d20ef","keyframes":{"transform":["translate3d(-119.34426%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Since Tesla is currently unable to meet all of the demand for their vehicles,

[{"selector":"#anim-f7e8f788-a18e-42ff-9408-db65b39b62f0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.499999772451451%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-aa5b63e8-03f0-444d-9e91-7f779ce45f4a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2abcfbf1-c394-4024-8d54-cef3100f9806","keyframes":{"transform":["translate3d(-119.34426%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

they must charge higher prices in order to keep up with consumer demand.

[{"selector":"#anim-43f3a614-1f40-4517-bd5c-b2c514785bdd [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-14.843749786673241%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-f6e6b378-1eb7-452f-8abf-179baa860e57","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1793ff16-9171-4b9a-ba79-b3316ef57cbf","keyframes":{"transform":["translate3d(-115.73771%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Additionally, since Tesla only produces a few hundred thousand vehicles each year,

[{"selector":"#anim-ba337ff0-5423-44de-854c-5b82e3c9b3fd [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.812499744007886%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-7f4b0d7c-8260-4779-b44c-71ec4949046c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cdb1afd8-bf92-40c0-9de0-de9b246685dd","keyframes":{"transform":["translate3d(-119.34426%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

there are not enough units to keep up with demand and as a result prices increase. Ultimately, higher prices mean higher profits for Tesla,

[{"selector":"#anim-92d34e14-41ea-4768-b456-07e2c4fe8e54 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.25246699150385%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-21f60ffe-6c39-4db7-89af-81206c637fd8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e206951b-b8db-401f-8bd5-f2931f42f79a","keyframes":{"transform":["translate3d(-117.70492%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

but unfortunately also means that potential customers have fewer options when it comes to buying an affordable electric vehicle.

[{"selector":"#anim-89732a11-178e-4a33-988a-5a1ecbf93104 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-4f4df740-2b10-4e6d-9b70-b94ceaf9d6e4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-60852f44-96dc-45fc-8425-b172508bc940","keyframes":{"transform":["translate3d(-117.37705%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]