Tesla has raised the prices of its Model S, X, and Y electric vehicles in the United States by low single-digit percentages, marking the second time the company has hiked prices for these models in a month. However, the automaker did not increase the prices of its cheapest car, the Model 3.
Tesla’s website shows that the prices of all variants of its higher-priced Model S and X vehicles increased by $1,000, while prices of all Model Y variants increased by $250. Despite the recent increases, Tesla’s vehicle prices remain lower than they were at the beginning of the year.
The company has been reducing its prices globally since January, including six times in the U.S., as it seeks to boost sales volume. CEO Elon Musk has stated that the company is willing to sacrifice margin for sales volume, but it is also looking to increase prices where possible. The recent price hikes are consistent with that strategy.
Even after the price increases, the base models of the Model S and X remain 16% and 19% cheaper in the U.S. than they were at the start of the year, respectively, while the long-range version of the Model Y is around 23% cheaper. The Model S now costs $88,490, while the Model X is priced at $98,490. The performance versions of both models cost $108,490. The prices of the long-range and performance variants of the Model Y are $47,490, $50,490, and $54,490, respectively.
Tesla’s decision to leave the price of the Model 3 unchanged is noteworthy. It is the automaker’s cheapest model, and its price has remained stable since the recent price hikes. This could be a sign that Tesla is focusing on increasing the prices of its higher-end models, which have larger profit margins.
Separately, Tesla’s Japan unit started accepting orders for its flagship sedan, the Model S, and its sports utility vehicle, the Model X, in the country on Friday. This move follows the company’s launch of the Model 3 in Japan last year.
The company has been reducing its prices globally to drive sales volume but is also looking to increase prices where possible to improve margins. The recent price hikes are consistent with this strategy.