By Michael Elkins
Electric vehicle giant, Tesla (NASDAQ:TSLA) raised the prices on their Model S and X in the U.S., according to its website Thursday, although they are still 20% lower than the start of the year cutting prices six times to drum up demand.
Tesla has been slashing prices globally since January, including as recently as Tuesday, to drive volume, especially for its mass-market cars, the Model Y crossover and the Model 3 sedan.
Tesla's Model S Plaid and Model X Plaid are now priced at $107,490, up from $104,990 earlier, while the price of the Model X is now roughly 2.6% higher at $97,490. The company’s Model S increased by around 2.9% to $87,490.
However, the prices of all four models are still both between 16% and 23% cheaper than at the start of the year.
Tesla Chief Executive Elon Musk on Wednesday doubled down on the price war he started at the end of last year, saying the EV maker would prioritize sales growth ahead of profit in a weak economy.
The company posted its lowest quarterly gross margin in two years, missing market estimates, as it slashed prices aggressively in markets including the United States and China to spur demand and fend off rising competition.
Shares of TSLA are up 0.45% in pre-market trading on Friday.