Tesla Inc. raised prices of its two high-volume models in the US and China by small amounts after several rounds of substantial cuts early this year.
(Bloomberg) — Tesla Inc. raised prices of its two high-volume models in the US and China by small amounts after several rounds of substantial cuts early this year.
The $250 boost to the Model 3 sedan and Model Y sport utility vehicle pales in comparison to the electric-car maker’s reductions that began in the US in January. The company’s 2,000-yuan ($289) increases in China follow several markdowns that started October.
The Model 3 now starts at $40,240 in the US and 231,900 yuan in China, while the Model Y is priced from $47,240 and 263,900 yuan.
This is the second time Chief Executive Officer Elon Musk has dialed prices back up since the company posted its lowest automotive gross profit margin in almost three years. After Tesla’s first-quarter earnings report sent the stock tumbling almost 10% on April 20, the carmaker bumped up the cost of the Model S and X by $2,500 in the US.
Tesla shares slipped 0.3% to $161.34 as of 8:30 a.m. Tuesday, before the start of regular trading in New York. The stock is still up 31% this year.
Read More: Musk Bets the House of Tesla on Low Prices, Razor-Thin Margins
(Updates with additional context and early trading starting in the fourth paragraph.)
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