Mar 17, 2024
As part of a series of surprising developments in the electric vehicles (EV) sphere, the Elon Musk-led EV maker firm Tesla has announced that it plans to jack up the prices of its Model Y EVs this month.
The EV maker said the prices of Tesla Model Y would be increased by 2,000 euros (equivalent in local currencies) in parts of European countries on March 22, 2024.
The price hike comes on the heals of an announcement made on earlier on Elon Musk's social media platform X, formerly known as Twitter, wherein the company said that it would increase the prices of all Model Y Tesla vehicles in the US by $1,000 on April 1, 2024.
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Reuters reported that the leading EV manufacturer previously raised the prices of its Model Y rear-wheel drive and long-range vehicles by $1,000 to $43,990 and $48,990, respectively, on March 1.
"This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal," Tesla CEO Elon Musk said in February while replying to a post on X made by Tesla's official Twitter handle in which the company hinted that the prices would be surged in the coming month.
Industry experts attribute the spike being observed in Tesla EVs cost to the rate rivalry kindled among the leading EV makers the preceding year.
Deploying its core resources in the production of its next-generation EV, which is code-named "Redwood," Tesla predicted "notably lower" sales growth this year in January this year.
