Tesla raises prices in U.S. day after sixth price cut of the year

Tesla Inc on Thursday raised U.S. prices for its Model S and X premium electric cars, though prices remained 20% lower than at the start of the year after a series of price cuts to boost demand, according to its website.

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Updated on:
April 22, 2023 at 18:20 pm

File photo for representational purposes.
File photo for representational purposes.

The move comes after Tesla shares fell nearly 10% on Thursday after the automaker missed its profit margin target after slashing prices. Shares of Tesla rebounded on Friday, closing up 1.3% at 165.08%.

Tesla’s Model S Plaid and Model X Plaid — performance versions of those vehicles — are now priced at $107,490, up from $104,990 previously, according to the company’s website.

The price of the Model X is now $97,490, about 2.6 percent higher than before, while the price of the Model S is up about 2.9 percent to $87,490. However, Tesla is offering three years of free use of its Superchargers to those who buy a premium model by June 30. Prices for all four models are still 16% to 23% lower than at the beginning of the year.

Also read: Could Tesla start an EV price war?

Tesla slashed prices on both the Model S and Model X by $5,000 earlier this month, days after Tesla reported that deliveries of those vehicles fell between January and March. up 38%.

Tesla has been slashing prices globally since January, including six cuts in the United States as of Tuesday. It is looking to drive sales, especially of its mass-market vehicles, the Model Y crossover and Model 3 sedan.

Tesla Chief Executive Elon Musk on Wednesday doubled down on a price war he began late last year, suggesting the electric carmaker would prioritize sales growth over profits amid a weakening economy.

Also read: Big push for Tesla: Autopilot crashes not EV failures, US state jury rules)

The company posted its weakest quarterly gross margin in two years, missing market expectations, as it slashed prices in markets including the U.S. and China to boost demand and fend off growing competition.

Tesla is pioneering a more dynamic way of pricing electric vehicles that other manufacturers will have to follow, Ford Motor Co Chief Executive Jim Farley said on Thursday.

First published date: April 22, 2023 at 18:20 PM CST

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