Apr 20 (Portal) – Tesla Inc (TSLA.O) hiked US prices for its premium Model S and X electric vehicles on Thursday, although they are still 20% lower than at the start of the year after a hike, according to its website Year of price cuts to stimulate demand.
Tesla has cut prices worldwide since January, including in the United States six times until recently, to boost volume, particularly for its mass-market cars, the Model Y crossover and Model 3 sedan.
Tesla’s Model S Plaid and Model X Plaid — the performance versions of those models — are now $107,490, up from $104,990 previously, the company’s website showed.
The Model X is now priced around 2.6% higher at $97,490, while the Model S is up around 2.9% at $87,490.
However, the prices of all four models are still between 16% and 23% cheaper than at the beginning of the year.
Tesla cut prices on both versions of the Model S and Model X by $5,000 earlier this month, days after it reported that deliveries of those vehicles fell 38% from January through March.
Tesla chief executive Elon Musk on Wednesday doubled down on the price war he started late last year, saying the electric-vehicle maker will prioritize sales growth over profits in a weak economy.
The company posted its lowest quarterly gross margin in two years and missed market estimates as it aggressively cut prices in markets like the United States and China to stimulate demand and stave off rising competition.
Ford CEO Jim Farley said Thursday that Tesla is pioneering a more dynamic way of pricing electric vehicles that other manufacturers need to follow.
Reporting by Abinaya Vijayaraghavan in Bengaluru; Edited by Sonia Cheema
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