Tesla (TSLA) raises prices on Model S, X, and Y vehicles in the U.S.
Shares of Tesla (NASDAQ: TSLA) are up more than 2% in pre-market trading Friday after the electric vehicle giant increased the U.S. prices of its Model S, X, and Y electric vehicles by low single-digit percentages on Thursday, though prices are still considerably lower than at the beginning of the year.
The company’s website showed raised prices for all variants of its higher-priced Model S and X vehicles by $1,000, while prices of all Model Y variants increased by $250. The new pricing represents an increase of about 0.5% to 1.1% since the last changes in price.
This is the second price hike for the Model S, Model X and Model Y cars since April 19, when Tesla last cut prices for some of its cars in the U.S. There were no changes to the prices of its cheapest car, the Model 3, since the hike earlier in May.
Since January, Tesla has implemented multiple price reductions worldwide, with six of them specifically in the United States. The primary goal behind these reductions is to stimulate sales volume. Elon Musk, the CEO of Tesla, has expressed the company's willingness to compromise on profit margins in exchange for increased sales. However, Tesla is also planning to gradually raise prices to a level that is advantageous for the company.
Separately, Tesla's Japan unit started accepting orders for its flagship sedan, Model S, and its sports utility vehicle Model X in the country on Friday, it said in a press release.
Shares of TSLA are up 2.24 percent in pre-market trading on Friday.
By Michael Elkins | [email protected]