Tesla raises prices in US, China, Japan and Canada

By Akriti Sharma

(Reuters) -Tesla Inc has raised prices in a range of up to $290 in Canada, China, Japan and the United States, its website showed on Monday, after having slashed prices on its top-selling vehicles since the start of the year.

The hike was Tesla (NASDAQ:)’s first on its two top-selling models at the same time in multiple markets, although prices across its lineup are much lower than in January, after a round of discounts.

Last month Chief Executive Elon Musk said the company would prioritise sales growth ahead of margins and look to profit later on its rollout of self-driving software for a larger fleet of vehicles.

Since January, Tesla has shifted to a real-time pricing model that is closer to airlines or ride-sharing than the fixed prices of the traditional auto industry model.

Musk has said the company is willing to sacrifice margin for sales volume but is also looking to move prices back higher, where it can, to match deliveries with output.

By Monday, Tesla’s website showed it had raised the starting price point by $250 on the base model Model Y and Model 3 in the United States.

Prices changed about the same amount in its second largest market of China, as well as in Canada and Japan, those websites showed.

It was the first time since January that Tesla has increased the price of its cheapest car, the Model 3, in the United States.

The entry-level, rear-wheel-drive Model 3 is still about 14% cheaper in the U.S. than at the start of the year. The long-range version of the Model Y remains about 24% cheaper in Tesla’s largest market.

In Canada, Tesla raised prices by C$300 ($222) for the performance versions of its Model 3 and Model Y. In Japan, prices for the entry-level Model 3 rose 37,000 yen ($269).

In China, Tesla raised the price for variants by 2,000 yuan ($289), the website showed.

Tesla touched off a price war in the world’s largest market when it began price cuts last year in China, where it and other established automakers face growing competition from a range of domestic electric car brands led by BYD Co (OTC:) Ltd.

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