Tesla's (NASDAQ: TSLA) shares are up by more than 2% in Friday's pre-market trading following the company's decision to raise the prices of its Model S, X, and Y electric vehicles in the United States. Despite the price increase, the cost of these models remains significantly lower than at the beginning of the year.
Model S, X, and Y Price Changes: Breakdown
Tesla's website displays price increases for all variants of its higher-priced Model S and X vehicles by $1,000, while prices of all Model Y variants increased by $250. The new pricing represents an approximately 0.5% to 1.1% increase since the last price change.
Second Price Hike for Model S, X, and Y Since April
This marks the second price hike for the Model S, Model X, and Model Y cars since April 19, when Tesla last cut prices for some of its vehicles in the U.S. There were no changes to the prices of its cheapest car, the Model 3, since the hike earlier in May.
Tesla's Multiple Price Reductions to Stimulate Sales Volume
Since January, Tesla has implemented multiple price reductions worldwide, six specifically in the United States. The primary goal behind these reductions is to stimulate sales volume. CEO Elon Musk has expressed Tesla's willingness to compromise on profit margins in exchange for increased sales while also planning to gradually raise prices to a more advantageous level for the company.
Tesla Japan Begins Accepting Model S and Model X Orders
In related news, Tesla's Japan unit started accepting orders for its flagship sedan, Model S, and its sports utility vehicle Model X in the country on Friday, according to a press release.
Tesla shares (TSLA) have risen by 2.24% in pre-market trading on Friday.