After multiple price hikes that pushed Tesla's bestselling Model Y above $65,000 for the base version, CEO Elon Musk said the automaker's overall pricing is "at embarrassing levels" and blamed supply chain shocks and overwhelming demand for the steady march upward.
"We've raised our prices quite a few times," Musk said on the company's second-quarter earnings call Wednesday. "They're frankly at embarrassing levels. But we've also had a lot of supply chain and production shocks and we've got crazy inflation."
Musk said that inflation appears to be cooling off and he's hoping to avoid any additional increases on Tesla's four-vehicle lineup this year — and to perhaps even bring prices down.
"I think inflation will decline towards the end of the year," Musk said, adding that economic predictions should be taken with a grain of salt. "I'm hopeful — and this is not a promise — but I'm hopeful at some point we can reduce prices a little bit."
Tesla sells at fixed prices online directly to consumers.
Tesla's entry-level vehicle, the Model 3 compact sedan, starts at $48,440 with shipping after briefly selling for $35,000 three years ago. The EV maker's most expensive Model X crossover — in Plaid performance trim — costs $140,440 with shipping.