Unimpressive First Quarter Report Forces Tesla to Increase The Prices of Its Vehicles

Electric Vehicle automaker Tesla has increased the prices of its Model S and X vehicles in the U.S. following an unimpressive first quarter (Q1) report.

While Tesla has been no stranger to frequent price changes throughout the years, the company clearly ramped them up in a recent move to bolster its revenue.

As seen on its website, Tesla increased each variant of its high-end models by $2,500, raising the cost of the sedan and sport utility vehicle by 2% to 3%. The Model S Long and X Long are now priced at $87,490 and $97,490 respectively.

While the Model S Plaid is now priced at $107,490, and the Model X Plaid at $107,490. Additionally, Tesla disclosed that the new Model S/Model X cars will receive three years of unlimited free supercharging.

Investors King observed that Tesla increased the prices of some of its vehicle models to prompt some buyers with existing orders and locked lower prices to take delivery.

Since the beginning of this year, Tesla has been slashing the prices of its vehicles most especially with regular cuts of some of its prices in the U.S. The Model S and Model X saw the most significant price drops following another wave of price cuts earlier this month.

The company saw a 24% decline in profit, which was largely expected due to a series of price cuts on some of its vehicle models, with the latest price cuts on Tuesday this week, after it slashed the prices of some of its vehicle models in the U.S. for the sixth time.

Analysts suggest that Tesla’s increase in the prices of some of its vehicle models, is partly due to the recent inflation pressure in raw materials and logistics, which the company’s CEO Elon Musk last year disclosed.

Musk in the first quarter revenue call, however, stated that Tesla has taken a view that pushing for higher volumes and a large fleet is the right choice, versus a lower volume and higher margin while noting that over time Tesla will be able to generate significant profit through autonomy.