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Tesla will raise prices on Model Y electric vehicles in parts of Europe From Reuters


©Reuters. FILE PHOTO: Model Y cars are pictured during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS/File Photo

(Reuters) – Tesla said on Saturday it will raise the price of its Model Y electric vehicles (EVs) in several European countries on March 22 by about 2,000 euros ($2,177) or the equivalent in local currencies.

The move, announced in a post on social media platform X, followed the automaker’s announcement on Friday that it would raise prices for all Model Y cars in the US by $1,000 starting April 1.

Tesla (NASDAQ:) had raised prices of its Model Y rear-wheel drive and long-range vehicles by $1,000, to $43,990 and $48,990, respectively, on March 1.

“This is the essential dilemma of manufacturing: Factories need continuous production to be efficient, but consumer demand is seasonal,” Tesla CEO Elon Musk said in February, responding to a post on his company’s in which he announced that prices would increase the following month.

Tesla’s margins have been hurt by a price war with rivals that began more than a year ago.

In January, Tesla warned of “noticeably lower” sales growth this year as it focuses on producing its next-generation electric vehicle, which is codenamed “Redwood (NYSE:).”

($1 = 0.9185 euros)

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