Tesla surprised customers today by hiking up prices across the board for Model 3 and Model Y in several major markets. The move comes just months after the EV maker slashed prices in a bid to boost lagging sales.
Tesla buyers in the US and Canada can expect to shell out an extra $250 to $300 for any vehicle in the lineup. Japanese motorists are looking at price tags inflated by nearly $400, while Chinese consumers face a 2,000 RMB bump. Tesla CEO Elon Musk has been candid about the company’s daily struggle to align production rates and orders, so frequent price adjustments seem to have become the norm.
Some critics argue that the abrupt reversals reveal a company scrambling to shore up margins in the face of slowing demand and growing competition. However, Tesla maintains that the increases simply reflect “a complex model” adjusted weekly based on “production capacity, macroeconomics, etc.” The EV pioneer took a hit last quarter with profit margins plunging below 20%.