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Tesla increases prices in the US days after the sixth price cut this year




April 20 (Reuters) – Tesla Inc ( TSLA.O ) raised U.S. prices for its Model S and X premium electric vehicles, its website said on Thursday, although they remain 20% lower than at the start of the year after a series of price cuts to increase demand.

Tesla has cut prices globally since January, including as many as six times in the U.S. as of Tuesday, to drive volume, particularly for its mass-market cars, the Model Y crossover and the Model 3 sedan.

Tesla’s Model S Plaid and Model X Plaid — the performance versions of those models — are now priced at $107,490, up from $104,990 previously, the company’s website showed.

The price of the Model X is now about 2.6% higher at $97,490, while the price of the Model S was increased by about 2.9% to $87,490.

However, the prices of all four models are still between 16% and 23% cheaper than at the beginning of the year.

Tesla had cut the prices of both versions of the Model S and Model X by $5,000 earlier this month, days after reporting that deliveries of those vehicles fell 38% in January to March.

Tesla CEO Elon Musk on Wednesday doubled down on the price war he started at the end of last year, saying the electric car maker would prioritize sales growth over profit in a weak economy.

The company posted its lowest quarterly gross margin in two years, missing market estimates, as it aggressively cut prices in markets including the US and China to stimulate demand and fend off growing competition.

Ford CEO Jim Farley said Thursday that Tesla pioneered a more dynamic way to price electric vehicles that other manufacturers must follow.

Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Sonia Cheema

Our standards: Thomson Reuters Trust Principles.



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