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DETROIT, April 21 (AP) After cutting U.S. auto prices four times this year, Tesla raised the cost of its slow-selling more expensive models overnight.
The rate hike was likely an attempt to appease investors, who sold Tesla shares on Thursday after their earnings and margins fell from previous price cuts.
The Austin, Texas-based company is adding $2,500 to all four versions of the Model S and X, raising prices from 2.4 percent to 2.9 percent.
The cheapest Model S now starts at $87,490, while the X has a base price of $97,490, according to data on Tesla’s website earlier Friday. Neither is eligible for the US government’s $7,500 EV tax credit because they exceed the list price limit.
Prices for the company’s best-selling Model Y small SUV and Model 3 small sedan remained unchanged after being cut earlier this week.
Tesla shares closed down nearly 10% on Thursday after Chief Executive Elon Musk said he would sacrifice profit margins to boost sales. On Wednesday, Tesla reported a 24% year-over-year drop in first-quarter net income, with operating margins falling to 11.4% in the previous quarter from 19.2% in the first quarter of last year.
The stock was flat in early trading Friday.
The timing of the price hike is somewhat odd for Tesla, as global sales of its aging Model X large SUV and Model S large sedan fell nearly 38% in the first quarter to 10,695 vehicles.
Shares of all electric automakers have come under intense pressure this week. Shares of Tesla fell 12.4% for the week, while startups Rivian, Lucid and Lordstown Motors each lost about 10% in market value. Fisker fell 14% for the week, Nio 12% and Nikola nearly 8%. (Associated Press)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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