Tesla Inc (NASDAQ:TSLA) has raised its prices for the second time in less than two weeks in the United States and other markets.
The prices of the Model Y and Model 3 variants have been raised by $250 each, according to the company’s website.
Tesla's Model Y base price now stands at $47,240, with the Long-Range crossover priced at $50,240 and the Performance variant at $54,240. The most affordable version of the Model 3 is now priced at $40,240, with the performance variant costing $53,240.
The electric car maker also raised its prices in other markets: In Canada, Tesla raised the prices of its performance versions of Model 3 and Model Y by C$300 ($222), while in Japan, the price of the entry-level Model 3 rose by 37,000 yen ($269).
In China, the company raised the price of variants by 2,000 yuan ($289). Tesla initiated a price war last year in China, which faces competition from several domestic electric car brands, including BYD Co Ltd.
The latest increase comes after Tesla slashed prices six times this year through mid-April.
Tesla has been cutting prices globally since January in an effort to boost sales, particularly for the mass-market cars, the Model Y crossover and Model 3 sedan. CEO Elon Musk has signaled that Tesla would prioritize sales growth over profit in a weak economy, even as Tesla's gross margins fell to a more than two-year low in the first quarter.
However, last month, Tesla announced its first US price hike.
Michael Hewson, chief market analyst at CMC Markets, called the price swings a "roller coaster ride."
"Coming so soon after the company announced price cuts it is becoming increasingly difficult to keep track of where prices might go next, even though prices are still down from the end of last year," Hewson said.
"This urge to constantly tinker with prices could prompt consumers to hold off their purchase in the hope that prices will come down later. It also feeds resentment amongst those who may have also paid a higher price. It might be worth Tesla settling on a price point and sticking with it for more than two weeks to create a semblance of stability."
Shares of Tesla finished almost 1% lower on Tuesday at US$160.31.
--Updates with analyst comment, share price--
Contact Angela at angela@proactiveinvestors.com
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