<ul class="summary-list"><li>The prices of some <keyword id="107096" type="COMPANY" weightage="60" keywordseo="Tesla">Tesla</keyword> models are going up because of the <keyword id="118965" type="PERSON" weightage="60" keywordseo="Supply-chain">supply chain</keyword> issues, CEO Elon Musk said.</li><li>Tesla earlier this month boosted prices on its Model 3 and Model Y.</li><li>The global auto industry has been hit hard by supply chain issues, notably a shortage of computer chips.</li></ul>Prices on some Tesla models are increasing due to global supply chain disruptions in the auto industry, particularly with raw materials, Elon Musk said on Twitter Monday.Musk's explanation came in response to a Twitter user who said he didn't like the "direction" the company was going in by "raising prices of vehicles but removing features like lumbar for the Model Y."The Tesla and SpaceX CEO responded: "Prices increasing due to major supply chain price pressure industry-wide. Raw materials especially."<blockquote class="twitter-tweet blockquote" data-lang="en" data-cards="" data-conversation="">-Elon Musk (@elonmusk) <a href="https://twitter.com/mims/statuses/1399492488612691973?ref_src=twsrc%5Etfw">May 31, 2021</a></blockquote>Tesla earlier this month boosted prices on its Model 3 and Model Y, <a href="https://electrek.co/2021/05/21/tesla-tsla-increases-model-3-y-prices/">Electrek reported.</a> It was the fifth price increase on the models in a matter of months.The global auto industry has been hit hard by supply chain issues, notably a shortage of computer chips, due to the <keyword id="8763838" type="UNKNOWN" weightage="60" keywordseo="covid-19">COVID-19</keyword> pandemic.The <keyword id="6451058" type="UNKNOWN" weightage="60" keywordseo="Semiconductor">semiconductor</keyword> shortage is <a href="https://www.businessinsider.com/chip-shortage-expected-cost-auto-industry-car-makers-110-billion-2021-5">expected to cost the global automotive industry</a> $110 billion in 2021. Carmakers including Ford and GM have cut their earnings expectations by billions of dollars.Tesla has not been immune to the impacts of the shortage. Last month, during the <keyword id="46640" type="ORGANIZATION" weightage="60" keywordseo="electric-car">electric car</keyword> company's earnings call, <a href="https://www.businessinsider.com/elon-musk-tesla-supply-chain-issues-chip-shortage-insane-difficulties-2021-4">Musk said supply chain issues were causing "insane difficulties"</a> and the chip shortage had impacted Tesla's manufacturing goals. Musk recently <a href="https://twitter.com/elonmusk/status/1398504702988390400?s=20">tweeted</a> that the delivery date for Tesla's Model S Plaid, the carmaker's quickest vehicle, was <a href="https://www.businessinsider.com/elon-musk-tesla-model-s-plaid-delivery-pushed-june-10-2021-5">pushed back by one week to June 10</a>.Tesla is now in talks to pay supplies upfront for computer chips, the <a href="https://www.ft.com/content/49459668-7eab-4589-8338-059e06b9fd8a">Financial Times reported.</a> Musk has also shown interest in vertical integration. Last year, <a href="https://www.businessinsider.com/tesla-to-expand-battery-manufacturing-make-own-automotive-batteries-2020-6">the company announced plans to make its own battery cells</a> and even <a href="https://www.businessinsider.com/tesla-abandons-acquisition-deal-talks-nevada-mining-company-cypress-report-2020-9">bought land in Nevada to mine for its own battery-grade lithium.</a>

Elon Musk says Tesla prices are increasing because of supply chain disruptions across the auto industry

<ul class="summary-list"><li><keyword id="6355119" type="ORGANIZATION" weightage="60" keywordseo="bmw">BMW</keyword> and two of its subsidiaries agreed to pay a joint penalty of $18 million to the US <keyword id="106012" type="ORGANIZATION" weightage="60" keywordseo="Securities-and-Exchange-Commission">Securities and Exchange Commission</keyword>. </li><li>The <keyword id="6362470" type="ORGANIZATION" weightage="60" keywordseo="sec">SEC</keyword> accused the German-based automobile company of inflating its own reported sales figures by having its North American dealers designate cars as sold when they were actually still on the market.</li><li>This comes after the SEC initially launched an investigation into BMW in December 2019 over concerns it was manipulating its sales figures. </li></ul>Bayerische Motoren Werke AG and two of its subsidiaries have agreed to pay a joint penalty of $18 million to the US Securities and Exchange Commission. The SEC – which launched an investigation into the German automaker in 2019 – concluded that it, along with BMW of North America and BMW US Capital, disclosed inaccurate sales figures while raising nearly $18 billion from corporate bond investors.BMW was accused of practicing what is known in the US as "sales punching" between 2015 and 2019. The SEC <a href="https://www.sec.gov/news/press-release/2020-223">said</a> that the company inflated its own reported retail sales figures by having its North American dealers designate cars as sold when they were actually still on the market. "Companies accessing U.S. markets to raise capital have an obligation to provide accurate information to investors," Stephanie Avakian, Director of the Division of Enforcement at the SEC, <a href="https://www.sec.gov/news/press-release/2020-223">said in a press release.</a> "Through its repeated disclosure failures, BMW misled investors about its U.S. retail sales performance and customer demand for BMW vehicles in the U.S. market while raising capital in the U.S."The SEC said BMW resolved the charges without admitting or denying the claims, which is common practice for these sorts of settlements. BMW's penalty was lowered as a result of its cooperation with the SEC.BMW isn't the first international automobile company to fall into hot water with the SEC. In September 2019, Fiat Chrysler Automobiles agreed to pay <a href="https://www.businessinsider.com/fiat-chrysler-to-pay-40m-fine-for-overstating-sales-numbers-2019-9">$40 million</a> to settle claims by the SEC that the company misled investors about its sales figures from 2012 to 2016.

BMW is paying $18 million to settle claims it inflated its car sales

<ul class="summary-list"><li>There wasn't much for bears to latch onto in <keyword id="107096" type="COMPANY" weightage="60" keywordseo="Tesla">Tesla</keyword>'s second-quarter <keyword id="6357061" type="SPONSORED" weightage="60" keywordseo="earnings">earnings</keyword>, Morgan Stanley analysts wrote in a recent note to clients.</li><li>The analysts highlighted three key takeaways from its earnings, including that increased production in China has led to positive margins for Tesla.</li><li>Tesla's "outstanding" cash-flow management in the quarter was also noted.</li></ul>Tesla bears are going to be hard-pressed to find any compellingly negative takeaways in the electric car company's recent quarterly earnings, according to Morgan Stanley analysts."In our opinion, bears really would have to nit pick at the release to construct a materially negative narrative here," analysts wrote in a note released by Morgan Stanley that examined three key takeaways following Tesla's <a href="https://www.businessinsider.com/tesla-second-quarter-q2-earnings-profit-revenue-sales-elon-musk-2020-7">fourth consecutive profitable quarter</a> which was detailed in its Q2 earnings on July 22.While the analysts acknowledged there were critiques to be made, including its lower sequential average sales price, lower-than-expected fixed costs that wouldn't remain, and the outsized role that sales of regulatory credits played in driving its revenue, they largely highlighted the overall strength of the quarterly results.The first takeaway: more production in China equates to a positive for Tesla's margins. The second quarter "marked a step change where Giga Shanghai accounted for a sharply higher proportion of global production and deliveries, magnifying the benefit to marginal profitability despite lower sequential ASPs," the research note said.Secondly, the analysts noted Tesla's "outstanding" cash-flow management, which was $418 million for the quarter and exceeded analysts' expectations.The analyst's final point was that comparing Tesla's second-quarter performance of positive profit and positive FCF to other auto companies "further makes comparisons between high EV players and established ICE players less and less meaningful."The research note published by Morgan Stanley ranked Tesla's stock rating as underweight with a price target of $740.Tesla topped Wall Street's expectations on Wednesday after the American electric vehicle and clean energy company posted its longest-ever profitable streak.Tesla's earnings per share (adjusted) <a href="https://www.businessinsider.com/tesla-second-quarter-q2-earnings-profit-revenue-sales-elon-musk-2020-7">came out to</a> $2.18 versus an expected loss of $0.15, while posting a second quarter revenue of $6.04 billion versus an expected $5.2 billion. "We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020," Tesla <a href="https://ir.tesla.com/static-files/f41f4254-f1cc-4929-a0b6-6623b00475a6">said</a> in a press release. "Production output of our existing facilities continues to improve to meet demand, and we are adding more capacity. Later this year, we will be building three factories on three continents simultaneously."On July 22, Tesla's CEO and product architect Elon Musk also <a href="https://www.businessinsider.com/elon-musk-tesla-launching-insurance-company-nationwide-hiring-2020-7">announced</a> that the company plans to grow its California insurance offering into a "major insurance company" nationwide. Tesla plans to use the data from its cars' computers to determine insurance rates for drivers based on how aggressively they drive.

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Elon Musk says Tesla prices are increasing because of supply chain disruptions across the auto industry

Victoria Cavaliere

BMW is paying $18 million to settle claims it inflated its car sales

Evan Sully

Tesla bears will be hard-pressed to find a negative narrative around the company's recent earnings, according to Morgan Stanley analysts

Evan Sully