Tesla (TSLA.O) has changed prices for one version of each of its Model Y crossover and Model 3 sedan, the fourth price adjustment by the electric vehicle maker since the start of 2023.
Tesla raised the price of its Model Y performance crossover by $1,000 to $58,990, according to its website. It slashed the price of the rear-wheel drive Model 3 sedan, its most affordable model, by $500 to $42,990, the website showed.
Both vehicles are eligible for $7,500 in federal tax credits.
Tesla introduced sweeping price cuts last month across its line-up and in all of its major markets.
The company has been adjusting prices online since at a pace that is uncommon in an industry where the benchmark is still dubbed as “sticker prices” on the window of a vehicle in inventory.
After the latest changes, the performance version of the Model Y, which has a higher top speed and a lower suspension, is still almost 16% cheaper than it was early last month for U.S. customers.
The rear-wheel-drive Model 3 is almost 9% cheaper.
Prices for the other two versions of the Model Y and the Model 3 on sale in the United States remained unchanged on Tuesday.
Tesla increased the price of its Model Y Long Range earlier in February in the U.S. market after the government lifted the ceiling on the price of crossover electric vehicles that qualify for the income tax incentive.
Chief Executive Elon Musk said in January that vehicle orders were almost twice the company’s output in January after the first round of price cuts.
Buy Crypto NowMusk said robust demand had led the company to make its first small price rise to the Model Y and that the company would focus on price to spur demand with the economy moving toward what he thinks will be a recession.
Tesla’s large price cuts in January sparked protests in China from Tesla customers who had made purchases earlier and missed out on the savings. Some Tesla owners in the U.S. complained that the price cuts also destroyed the resale value of their vehicles.
Tesla’s price cuts in 2023 came after almost two years when it had been driving prices higher and could not meet demand.
