Tesla had a banner third quarter despite the global semiconductor shortage that has plagued other carmakers. Tesla CEO Elon Musk said in June that Tesla’s incremental price hikes on the Model 3 and Model Y during the first half of 2021 were due in large part to supply chain shortages. But the company was able to rewrite its vehicle software so it could support alternate chips.
Other automotive companies, including Volkswagen, Ford, and Toyota have not been as fortunate, taking measures like increasing vehicle prices and temporarily shuttering factories to try to weather the chip shortage.
Tesla hasn’t offered an explanation for the latest price hikes, but company CFO Zach Kirkhorn said during its third quarter earnings call with investors that the increased demand for electric vehicles “caught us a little bit off guard.”