Tesla Inc. raised prices of its vehicles in the US, the third change in less than a month, adding $1,000 to Model X and Model S base and plaid cars.
(Bloomberg) — Tesla Inc. raised prices of its vehicles in the US, the third change in less than a month, adding $1,000 to Model X and Model S base and plaid cars.
The base Model S now costs $88,490, still significantly lower than $104,990 at the start of the year before the Elon Musk-led company started cutting prices globally. The Model X rose to $98,490 and the plaid version to $108,490.
Tesla also lifted prices of its best-selling Model Y by $250 to $47,490, according to its website.
Musk Bets the House of Tesla on Low Prices, Razor-Thin Margins
See more on the latest price changes here.
Tesla has tinkered its prices at least six times this year — cutting them to chase targets and boost market share, and raising them to defend shrinking margins.
“Tesla is attempting to increase its margin as it has faced a sharp decrease in profits from several rounds of earlier price cuts,” said John Zeng, managing director of consultancy LMC Automotive in Shanghai. He also said Tesla was pushing through incremental raises as a signal to potential customers that its price adjustment direction is reversing.
The company’s shares slumped nearly 10% on April 20 after first-quarter results showed the aggressive price cuts were hurting margins. Tesla has risen 5.6% in the three weeks since and is up 40% this year overall.
–With assistance from Chunying Zhang.
(Adds comment and more details on price rises. An earlier version corrected the revised price of Model X in second paragraph.)
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