Stiff competition: A line of EVs of the Model Y at Tesla’s ‘Gigafactory’ plant in Gruenheide, Berlin. Tesla’s margins have been hurt by a price war with rivals that started more than a year ago. — AFP
NEW YORK: Tesla says it will increase the price for its Model Y electric vehicles (EV) in a number of European countries on March 22 by approximately €2,000 (US$2,177) or the equivalent in local currencies.
The move, announced in a post on social media platform X, followed the automaker’s announcement last Friday that it would increase prices for all Model Y cars in the United States by US$1,000 on April 1.
Tesla had raised the prices of its Model Y rear-wheel drive and long-range vehicles by US$1,000 to US$43,990 and US$48,990, respectively, on March 1.
“This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal,” Tesla chief executive officer Elon Musk said in February, replying to a post on X from his company announcing that prices would go up the following month.
Tesla’s margins have been hurt by a price war with rivals that started more than a year ago.
In January, Tesla warned of “notably lower” sales growth this year as it focuses on the production of its next-generation EV, which is code-named “Redwood.” — Reuters
