Tesla increases prices of top models after stock slump

Tesla, the electric car manufacturer, has increased its prices for its top-end model vehicles in the U.S. this week shortly after the company’s price cuts it made earlier this year. 

The price increase is for the Model S and X premium electric vehicles, according to Reuters.  

Tesla’s website showed that the Model S and Model X Plaid vehicles are now priced at $107,490, while the Model S and Model X standard vehicles are 2.6 percent and 2.9 percent higher than their previous prices, respectively, Reuters reported.

The price increase comes as the company has been steadily cutting prices globally due to ongoing high inflation rates. However, Tesla raised the prices of its vehicles last year, increasing between 5 percent to 10 percent because of rising production costs. 

Reuters reported that Tesla CEO Elon Musk stood firm on the company’s ongoing price increases, saying the EV maker would prioritize sales growth ahead of profit in a weak economy. 

The company’s shares dipped to 9.7 percent as its gross margin dropped, which is leading the electric car manufacturer to drop below its market estimates.

Ford CEO Jim Farley said on Thursday that Tesla was pioneering a more dynamic way of pricing electric vehicles that other manufacturers would have to follow, Reuters reported.