Tesla hikes prices in US, China, Japan and Canada

TESLA has raised prices for its Model Y and Model 3 variants by the equivalent of about US$300 in the United States, China, Japan and Canada, after having slashed prices on its top selling vehicles since the start of the year.

The US automaker has raised the starting price point on the Model Y and Model 3 electric vehicles in the US by US$250, its website showed — the second time in less than two weeks, after multiple price increases in the past.

In China, Elon Musk-led Tesla raised the price for variants by 2,000 yuan (S$386), the website showed.

The move comes after the company posted its lowest quarterly gross margin in two years and missed market estimates after aggressively cutting prices to spur demand and fend off rising competition.

Tesla has cut prices globally since January in numerous markets worldwide to stay ahead of legacy US competitors such as Ford Motor, while it strives to catch up with Chinese automakers such as BYD in its second-largest market.

The company has so far been able to stay ahead of large US and Japanese automakers that are making inroads in EVs by cutting sticker prices, but Chinese automakers are starting to take the lead in that market and others with even lower-cost offerings.

SEE ALSO

Tesla Models S, X unavailable in some Asia-Pacific countries including Singapore

Tesla’s plunge drags valuation below US$500 billion on margin fear

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Chief executive Elon Musk last month signalled the EV maker would prioritise sales growth ahead of profit in a weak economy.

In Canada, the car manufacturer raised the prices of its Performance crossover Model 3 and Model Y by US$300 each. In Japan, prices for the entry-level Model 3 were increased by 37,000 yen (S$359). REUTERS