According to Tesla’s website, the American automaker has increased the prices of its premium electric vehicles, Model S and X. Although the prices are still 20% lower than the beginning of the year after several cuts in the past, the company has been increasing prices globally since January, with the latest increase coming on Thursday. Tesla has cut prices six times in the US since January to boost sales, particularly for the Model Y crossover and the Model 3 sedan.
Tesla’s website now shows that the Model S Plaid and Model X Plaid, the performance versions of these vehicles, are priced at $107,490, up from $104,990.
Tesla model S PLAID
MODEL X PLAID $107,490
The Model X now costs roughly 2.6% higher at $97,490, while the Model S has increased by around 2.9% to $87,490. Despite these increases, the prices of all four models are still between 16% and 23% cheaper than at the start of the year.
Earlier this month, Tesla had reduced the prices of both versions of the Model S and Model X by $5,000. This came after the company reported a 38% slump in deliveries of these vehicles from January to March. On Wednesday, Tesla CEO Elon Musk reiterated that the company would prioritize sales growth over profit in a weak economy, doubling down on the price war that he began at the end of last year.
Tesla’s aggressive pricing strategy seems to have affected the company’s gross margin, which was at its lowest in two years, missing market estimates. The automaker has been slashing prices aggressively in markets such as the US and China to spur demand and fend off rising competition. Ford CEO Jim Farley even commented that Tesla is pioneering a more dynamic way of pricing electric vehicles that other manufacturers will have to follow.
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