After a series of price discounts to boost demand, Tesla Inc. (TSLA.O) hiked the U.S. prices for its Model S and X luxury electric vehicles on Thursday.
Since January, Tesla has cut prices globally, including six times in the U.S. until Tuesday, to boost sales of its mass-market Model Y crossover and Model 3 sedan.
Tesla’s website now lists Model S Plaid and Model X Plaid performance cars at $107,490, up from $104,990. The Model S now costs $87,490, while the Model X costs $97,490, up 2.6%. All four models are 16%–23% cheaper than at the start of the year.
After reporting 38% lower deliveries in January–March, Tesla lowered Model S and Model X prices by $5,000 earlier this month. On Wednesday, Tesla CEO Elon Musk said the E.V. maker would prioritize sales growth over profit in a bad economy.
As it cut prices in the U.S. and China to boost demand and stave off competition, the company missed market projections and had its lowest quarterly gross margin in two years. On Thursday, Ford CEO Jim Farley said Tesla was setting a new pricing standard for electric cars.
