Electric Vehicle giant automaker Tesla has increased the prices of its Model 3 and Model Y vehicles in the United States, Canada, Japan, and China, raising both by $250.
In the U.S., the Model 3 price is now pegged at $40,240 while the Model Y is priced at $47,240. In China, the Model 3 now costs 231,900 Yuan ($33,549), up from 229,900 yuan, while the Model Y is now 263,900. The long-range and performance editions of the car are also priced 2,000 Yuan higher.
In Canada, Tesla increased prices for the performance versions of its Model 3 and Model Y by C$300 ($222). In Japan, prices for the entry-level Model 3 rose 37,000 Yen ($269).
Investors King understands that Tesla adjusted the prices of its vehicle Models, to stoke demand and account for shifting market conditions. Meanwhile, despite the recent hike in prices of its vehicles, the prices are still lower than what it was at the beginning of the year, due to several rounds of price cuts across several markets, in a bid to boost demand.
The company’s CEO Elon Musk last month disclosed that Tesla would prioritize sales growth ahead of margins and look to profit later on its rollout of self-driving software for a larger fleet of vehicles. He also stated that the company is willing to sacrifice margin for sales volume, but is also looking to move prices back higher where it can, to match deliveries with output.
Reports reveal that other electric carmakers are closely watching Tesla’s pricing strategy, with some analysts suggesting that the EV giant maker has sparked a price war with its cuts.
It is well known that Tesla has been the dominant EV player for so long, but lately, it is facing heightened competition from not only luxury EVs but also mainstream vehicles that come in different body types and price points,
Tesla faces a growing slate of deep-pocketed competitors, from companies such as General Motors, Ford, and Mercedes-Benz, looking to disrupt its market dominance.
