TEXAS: Tesla Inc has raised prices for its Model 3 and Model Y variants by about 300 dollars in the United States, Japan, China and Canada after slashing prices on its primary selling cars since the start of the year.
The United States automaker raised the starting price point on the Model 3 and Model Y electric cars in the United States by 250 dollars, its website showed for the second time in slighter than two weeks after multiple price raises in the past. In China, the website showed that Elon Musk-led Tesla had increased the price for variants by 2,000 yuan.
The move comes after the Tesla company posted its lowest quarterly gross margin in two years and missed market estimates after cutting prices to spur demand and fend off rising competition.
Tesla has cut prices internationally since January in many markets worldwide to stay ahead of legacy United States competitors such as Ford Motor while it strives to catch up with automakers of China, such as BYD Co Ltd in its second-largest market.
The Tesla company has so far been able to stay ahead of large United States and Japanese automakers making inroads in EVs by cutting sticker prices. Still, Chinese automakers and others are leading in that market with even lower-cost offerings.
Last month, Chief Executive Elon Musk signalled that the Electric Vehicle maker would prioritize sales growth ahead of profit in a weak economy.
In Canada, the vehicle manufacturer increased its Performance crossover Model Y and Model 3 prices by $300 each. In Japan, the entry-level Model 3 costs increased by 37,000 yen.
