This year U.S. After cutting vehicle prices four times, Tesla raised the price overnight on its slow-selling, expensive models. The increase may be an attempt to appease investors who dumped Tesla shares on Thursday after earlier price cuts saw revenues and profit margins fall.
The Austin, Texas, company added $2,500 to all four versions of Models S and X, raising prices from 2.4% to 2.9%. The lowest-priced Model S now starts at $87,490, while the X’s base price is $97,490, according to Tesla’s website early Friday. U.S. They are not eligible for the government’s $7,500 electric vehicle tax credit because they exceed the sticker price limits.
Prices for the company’s best-selling Model Y small SUV and Model 3 small sedan remain the same after being cut earlier this week. Shares of Tesla fell nearly 10% Thursday after CEO Elon Musk said he would sacrifice profit margins to boost sales.
Tesla on Wednesday reported first-quarter net income fell 24% from a year earlier, and operating profit margins fell to 11.4% last quarter from 19.2% in the first quarter last year. The stock was flat in early Friday trading. The price hike comes at an odd time for Tesla as global sales of the aging Model X large SUV and Model S large sedan fell nearly 38% in the first quarter to 10,695. Shares of all-electric vehicle makers are under considerable pressure this week.
Shares of Tesla fell 12.4% for the week, while startups Rivion, Lucid, and Lordstown Motors all lost 10% of their value. For the week, Fisker fell 14% and Neo fell 12%, while Nicola fell nearly 8%.
