Tesla (NASDAQ: TSLA) stock surged over 6% on Monday after the electric vehicle (EV) giant announced a price increase for its flagship model, the Model Y. However, TSLA shares relinquished 1.43% of those gains in the opening hours of trading on Tuesday.
Tesla (TSLA), the pioneering electric vehicle (EV) maker, has announced a forthcoming price hike for its mid-size SUV, the Model Y. The company revealed on its official website that starting April 1st, the cost of the Model Y will rise by $1,000.
This move follows a similar $1,000 increase initiated on March 1st for Tesla’s rear-wheel and long-range variants of the Model Y, bringing their respective base prices to $43,990 and $48,990. Both variants are eligible for the $7,500 EV federal tax credit.
The successive price hikes in March and April come in the wake of price reductions announced in January for the Chinese and European markets, followed by a similar move in the U.S. in February. Following the latter adjustment, CEO Elon Musk penned a note on X.
“Since most people don’t love to buy cars in the middle of winter, Tesla is offering a $1000 incentive to do so. This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal.”
Tesla previously announced that purchasers can receive 5,000 complimentary hours of Supercharging if they take delivery by the end of the month. Moreover, existing Model Y owners who trade in their vehicles for another are eligible for 10,000 free hours of Supercharging.
These developments come amidst a challenging period for Tesla, marked by a slump in EV demand and mounting competition in the electric vehicle market.
Tesla (NASDAQ: TSLA) Stock Movement
TSLA stock jumped 6.25% to close at $173.80 on Monday. The traders had exchanged hands with 108,214,360 (108.21 million) shares compared to the average daily trading volume of 105.74 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
