Tesla Inc (NASDAQ:TSLA, ETR:TL0) stock closed nearly 7% higher on Monday after announcing Model Y price hikes in Europe and the US.
Shares rebounded handily from recent lows amid concerns about demand and competition.
The price adjustments come amidst a broader price war in China's EV market, where Tesla faces stiff competition from companies like BYD.
According to Tesla's statement released over the weekend, prices for Model Y vehicles will be raised by approximately €2,000 in certain European markets effective March 22, while all Model Y cars in the US are set to see a $1,000 increase starting April 1.
The move comes amid a backdrop of concerns regarding dwindling demand and intensified competition in the electric vehicle (EV) market.
Tesla stock closed at a 10-month low last week.