Elon Musk claims that Tesla is holding off on lowering the cost of its electric automobiles until inflation "calms down" after rising 20–30% over the previous two years.

One of the primary issues at the beginning of the electric car revolution was the price.

EV supporters dispute the allegation by asserting that prices will decrease with volume and as batteries become more affordable with new technology.

Up until 2020, when the global economy was severely impacted by the epidemic and unchecked inflation, they were correct.

Due to its direct-to-consumer strategy, which does not rely on vehicle dealerships that agree on the final pricing with the customers, Tesla has been the finest illustration of that.

The ultimate costs, which have been progressively rising, are those listed by Tesla on its website.

For instance, the Tesla Model Y had a starting price of $53,000 in early 2020, but it now has a starting price of $66,000.

That represents a 25% price increase in less than two years, and this is true for the whole portfolio of Tesla vehicles.

It's interesting to note that those price hikes haven't had any impact on demand for Tesla, 

which continues to have a sizable backlog of orders with some of its models still having a 6- to 10-month delivery window for new bookings.

Tesla, though, has said that its objective is to lower the cost of electric vehicles so that more people may afford them.

When questioned about when to anticipate price reductions from Tesla, CEO Elon Musk responded on Twitter that the company aims to do so when "inflation slows down":

It’s important to note that while Tesla has been increasing prices significantly over the last two years, its gross margin on vehicles has also significantly improve