Tesla raises its prices in the United States, days after its sixth price cut this year

(Reuters) – Tesla Inc (TSLA.O) has raised US prices for its premium Model S and X electric cars, according to its website Thursday, though they are still 20% lower than at the start of the year after a slew of cars. From price cuts to mobilize demand.

Tesla has cut prices globally since January, including six times in the US as recently as Tuesday, to increase volume, especially for its mass-market vehicles, the Model Y crossover and Model 3 sedan.

The company’s website shows that Tesla’s Model S Plaid and Model X Plaid—the performance versions of those models—are now $107,490, up from $104,990 previously.

The Model X is now priced nearly 2.6% higher at $97,490, while the Model S price has been increased by about 2.9%, to $87,490.

However, prices for all four models are still between 16% and 23% cheaper than they were at the beginning of the year.

Tesla cut prices on both the Model S and Model X versions by $5,000 earlier this month, days after it reported shipments of those vehicles fell 38% in the January-March period.

Tesla CEO Elon Musk on Wednesday doubled down on a price war he launched at the end of last year, saying the electric car maker would prioritize sales growth over profit in a weak economy.

The company posted its lowest quarterly gross margin in two years, below market estimates, as it aggressively slashed prices in markets including the United States and China to stimulate demand and fend off rising competition.

Ford CEO Jim Farley said Thursday that Tesla pioneered a more dynamic way of pricing electric cars that other manufacturers have to follow.

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Additional reporting by Abhinaya Vijayaraghavan in Bengaluru; Editing by Sonia Cheema

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