FILE PHOTO: A Tesla logo is seen on a wheel rim during the media day for the Shanghai auto show in Shanghai, China April 16, 2019. REUTERS/Aly Song/File Photo
(Reuters) -Tesla Inc raised the U.S. prices for its Model S and X premium electric vehicles, according to its website on Thursday, although they are still 20% lower than the start of the year after a slew of price cuts to drum up demand.
Tesla (NASDAQ:TSLA) has been slashing prices globally since January, including as many six times in the United States until 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- the performance versions of those models – are now priced at $107,490, up from $104,990 earlier, the company’s website showed.
The price of the Model X is now roughly 2.6% higher at $97,490, while that of the Model S was increased 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 had cut prices on both versions of the Model S and Model X by $5,000 earlier this month, days after reporting deliveries of these vehicles slumped by 38% in January to March.
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.
Ford Chief Executive Jim Farley said on Thursday that Tesla was pioneering a more dynamic way of pricing electric vehicles that other manufacturers would have to follow.