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Tesla reverses course, raises prices on two top end models | CNN Business

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After a series of price cuts throughout most of this year, Tesla is raising the prices of its two upper-end models: the Model S and the Model X

The decision is a reversal of its strategy that was confirmed just this week by CEO Elon Musk during a conference call with investors. That call followed a disappointing first quarter earnings report, in which the company’s profit margin came up short of forecasts due in large part to lower prices. “We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here, versus a lower volume and higher margins,” Musk told investors.

Some competitors, including Ford\n \n , have responded with lower prices of their own. Some analysts see Tesla’s price cuts as a way of taking aim at rivals who are struggling to make money on their EV offerings as they ramp up production. But it has raised concerns about its profit margins going forward, and that led to Tesla share prices dropping nearly 10% on Thursday following its first quarter earnings report. Shares of Tesla\n \n rebounded more than 1% on the price rise news Friday.

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Tesla is a victim of a price war it started | CNN BusinessTesla helped kick off an EV price war. Now, those lower prices are hitting the company’s sales and profits. Can we stop with these cars already No one is even close to Tesla. They beat all the other car manufacturers in sales combined last year. Stop with the hate CNN. Duh
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