Tesla reverses and hikes prices after months of cuts
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EV giant Tesla (NASDAQ:TSLA) raised prices of its Model S and X after a slew of price cuts this year to boost demand.
The move comes as TSLA stock slumped 10% on Thursday following margin worries after its quarterly results.
According to the website, Tesla's Model S Plaid and Model X Plaid are currently priced at $107,490, up from $104,990 earlier. The price of the Model X was raised by 2.6% to $97,490 and the Model S price increased 2.9% to $87,490.
But the prices of all four models are still about 16% to 23% lower than at the start of the year. Earlier this week, Tesla (TSLA) cut prices of its Model 3 and Model 7 vehicles by $3,000 in the US, the sixth price cut in 2023.
CEO Elon Musk is prioritizing sales over near-term profit amid a weak economy. TSLA recently posted its lowest quarterly gross margin in two years, missing market estimates, to spur demand and fend off rising competition.
China-based, Nio (NIO) refrained from such price wars, while Xpeng (XPEV) cut costs in China with a new vehicle manufacturing platform. Ford (F) also trimmed prices on the electric Mustang, following Tesla's lead.
Meanwhile, ARK Invest's Cathie Wood put a $2,000 price target on TSLA shares for 2027.
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