Tesla CEO Ilon Musk warned of inflationary pressures on production, as a result of which his company was forced to raise prices on its electric cars in the U.S. and China, as the key component of batteries for electric vehicles – nickel – has risen sharply in price, writes CNBC.

The company raised prices on all of its models in the US. In China, the prices of the Model 3 and Model Y versions went up, marking the second price increase in the past week.

Although the company did not give a clear answer about the reason for the increase in selling prices, it is known that Tesla has been buying aluminum from a Russian company since 2020.

Earlier this week, Musk tweeted that Tesla and his other company, space company SpaceX, were facing “significant inflationary pressures in raw materials and logistics.”

In addition to higher prices for the main raw material, nickel, a new COVID-19 outbreak in China and quarantines declared in some cities in the country are also adding to the problem, slowing down supply chains. In addition, critical components such as semiconductors also remain in short supply.

So far, there is evidence of new pricing for Tesla products in China: the Model 3 Performance has a starting price of 367,900 yuan ($57,648). The Model Y Long Range in China now costs 375,900 yuan – up from the previous price of 357,900 yuan. The Model Y Performance is now priced at 417,900 yuan, up from 397,900 yuan previously.