Supply chain logistics, cost of raw materials and tarrifs has been the main cause of multiple tire price hikes in 2021. While we're traditionally used to seeing a tire manufacturer employ a price hike at the beginning of every year, we've seen at least two to four tire price increase throughout this year from Michelin, Pirelli, Continental, Falken and Hankook tire as container prices from overseas continue to increase and domestic shipping with no cooling in sight.
Supply Chain – Cost of importing goods, moving freight around the US and tariffs have probably affected tire pricing the most in 2021. Some of the Tesla factory tires (which are stamped with either a TO or T1) are made here and some are made out of country. Michelin will have raised tire pricing 4x by September 1, 2021! Falken has already raised tire pricing 3x this year. Pirelli has raised prices two times this year, and Continental surprisingly has only performed one price hike.
Raw Material - Most Teslas with the exception of the Model 3 18” factory tire come with 19”, 20”, 21” or 22” tires. Larger tires equal more material and naturally more cost. Electric vehicles are heavier than traditional vehicles and there’s a need for sturdier and more durable tires, which can lead to more expensive natural material as well. There’s also a production capacity issue at all the tire manufacturers. The manufacturers can’t make as many tires at their facility when they’re making large tires because they just take up more space when you start producing in the hundreds of thousands of units.
Noise Cancelling Foam - Michelin, Continental, Pirelli and Hankook are all Tesla original equipment (oe) suppliers for the Model S, Model 3, Model X and Model Y. They’re all required to install noise cancelling foam in the tires that they supply Tesla, which adds to the cost. Each manufacturer has a fancy name for their foam, but at the end of the day, each manufacturer installs a polyurethane foam sheet to reduce road noise.
Michelin – Acoustic Technology aka Acoustic Tech
Continental – ContiSilent
Pirelli – Pirelli Noise Cancelling System
Hankook – Sound Absorber
What does this mean for the Tesla customer who buys seasonally (aka Winter tires)? Buy your Tesla Winter Tire and Wheel packages now and avoid paying higher prices later. Your average Tire and Wheel package could increase $100-$200 before Winter 2021 even hits.
September 1
- Michelin/BFG/Uniroyal up to 8%
- Cooper / Mastercraft / Hercules built by Cooper up to 8%
- Goodyear/Dunlop/Kelly up to 8%
August 1
- Hankook / Laufenn up to 7%
- Yokohama to be determined
- Falken / Ohtsu / Sumitomo up to 8%
- Toyo up to 8.5%
- Nitto up to 9%
- Kumho up to 7%
- Nexen up to 8%
July 1
- Continental/General up to 10%
- Pirelli up to 6%
- Michelin / BFG / Uniroyal up to 6%
- Apollo up to 8%
- Bridgestone / Firestone up to 8%
- Goodyear/Dunlop/Kelly up 8%
- Mickey Thompson up to 8%
- Cooper up to 8%
- Ironman P/LT up to 5%
- Hercules P/LT up to 5%
- Hercules/Ironman/Dynatrac TBR up to 3%
June 1
- Nitto up to 8%
May 15
- Hercules / Ironman / Dynatrac P/LT/MTR up to 6%
May 1
- Kumho up to 5%
- Falken/Ohtsu up to 8%
- Cooper P/LT up to 8%
- Yokohama P/LT up to 8%
- Toyo P/LT & Commercial up to 6%
- Hankook & Laufenn up to 5%
- Hankook Commercial up to 5%
- Bridgestone & Firestone P/LT up to 8%
- Firestone Commercial up to 8%
- Nexen up to 7%
April 15
April 1
- Goodyear/Dunlop/Kelly up to 8%
- Michelin/BFG/Uniroyal up to 8%
- https://www.moderntiredealer.com/articles/31579-michelin-will-raise-consumer-tire-prices-on-april-1
- https://www.tirebusiness.com/news/michelin-bfg-uniroyal-carlt-tire-prices-going-8-april-1
- Bridgestone Commercial up to 8%
March 1
- Continental & General no % announced
- Vredestein/Apollo up to 5%
February 1
- Michelin/BFG/Uniroyal up to 5%
- Hercules & Ironman P/LT/MTR up to 5%
January 1
- Falken & Ohtsu up to 8%
- Toyo Tire up to 5%
- Kumho Tire up to 7%
- Hankook Tire up to 7%
- Cooper Tires up to 8%
- Hercules & Ironman up to 8% (Depends on Anti Dumping)
- Pirelli Tire (no announced %)
- Bridgestone & Firestone (no announced %)