Tesla raises prices

Tesla raises prices

Tesla Charging

(Reuters) -Tesla Inc has raised prices for its Model Y and Model 3 variants by the equivalent of about $300 in the United States, China, Japan and Canada, after having slashed prices on its top selling vehicles since the start of the year.

The U.S. automaker has raised the starting price point on the Model Y and Model 3 electric vehicles in the U.S. by $250, its website showed – the second time in less than two weeks, after multiple price increases in the past.

In China, Elon Musk-led Tesla raised the price for variants by 2,000 yuan ($289.39), the website showed.

The move comes after the company posted its lowest quarterly gross margin in two years and missed market estimates after aggressively cutting prices to spur demand and fend off rising competition.

Tesla has cut prices globally since January in numerous markets worldwide to stay ahead of legacy U.S. competitors such as Ford Motor, while it strives to catch up with Chinese automakers such as BYD Co Ltd in its second-largest market.

The company has so far been able to stay ahead of large U.S. and Japanese automakers that are making inroads in EVs by cutting sticker prices, but Chinese automakers are starting to take the lead in that market and others with even lower-cost offerings.

Chief Executive Elon Musk last month signaled the EV maker would prioritize sales growth ahead of profit in a weak economy.

In Canada, the car manufacturer raised the prices of its Performance crossover Model 3 and Model Y by $300 each. In Japan, prices for the entry-level Model 3 were increased by 37,000 yen ($269.01)

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