Brandon Bell
Tesla (NASDAQ:TSLA) plans to raise prices of its Model Y midsize electric SUV in both the United States and several European countries.
The company on Friday said prices in the United States will increase by $1,000 for all Model Y and later cars April 1st. Tesla (TSLA) followed on Saturday by saying that Model Y prices would increase in several European countries on March 22 by around 2,000 euros or the equivalent in local currencies.
The electric vehicle (EV) giant announced the updates on X (formerly Twitter).
Tesla (TSLA) margins overall have been hurt by an electric vehicle price war that began more than a year ago, along with plummeting demand for electric cars among consumers.
The company’s operating margin in its latest quarterly report was 8.2% of sales, up from 16% a year ago. Tesla (TSLA) also warned of significantly lower vehicle volume growth in 2024 at the time.
Tesla (TSLA) chief Elon Musk had said in the subsequent earnings conference call that the average selling price of other top-selling vehicles in the world was “much lower” than that of a Model Y.