Brandon Bell
Tesla (NASDAQ:TSLA) plans to raise prices for its Model Y midsize electric SUV in both the U.S. and several European countries.
The company late on Friday said that prices in the U.S. will increase by $1K for all Model Y cars on April 1. Tesla (TSLA) followed that up on Saturday by saying that Model Y prices would rise across a number of countries in Europe on March 22 by about EUR 2K or the equivalent in local currencies.
The electric vehicle (EV) giant announced the updates on X (formerly Twitter).
Tesla’s (TSLA) margins in general have been hurt by a price war in the EV industry that started more than a year ago, along with slumping demand among consumers for electric cars.
The company’s operating margin in its most recent quarterly report came in at 8.2% of sales, compared to 16% a year ago. Tesla (TSLA) at that time had also warned of notably lower vehicle volume growth in 2024.
Tesla (TSLA) top boss Elon Musk in the subsequent earnings conference call had said that the average selling price of other top-selling vehicles in the world was “much lower” than a Model Y.