Tesla has raised prices in its most important electric vehicle markets, including China and the United States, reversing a series of recent price cuts that have pushed the company’s profit margin to the lowest since 2020 and sparked a price war. The US car manufacturer has increased the prices of its Model Y SUV and Model 3 sedan by 2,000 yuan in China, its largest overseas market, according to the company’s website on Tuesday.
Last month, Tesla CEO Elon Musk confirmed the company’s pricing strategy at an earnings call, hinting at more price cuts to boost sales volumes. But analysts said the recent price increases had the same purpose of stoking consumer demand. Tesla may be trying to “reverse customer expectation for further price cuts,” so as to prevent customers from adopting a further wait-and-see strategy, said Citi analysts on Tuesday.
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