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Tesla hikes price of high-end Model S and Model X in China by roughly $2,750

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Tesla has enacted a series of price cuts on its cars. But it has recently begun raising the prices again.

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Tesla raised the price of its more expensive Model S and Model X cars in China, its website showed Friday, following other hikes to its other vehicles a few days prior.

Elon Musk’s automaker raised the prices by 19,000 Chinese yuan ($2,749) across both the models and their various versions.

The Model S now costs 808,900 yuan versus 789,900 yuan prior. The Model S Plaid costs 1,028,900 yuan versus 1,009,900 before. The Model X now costs 898,900 yuan versus 879,900 yuan before.

It comes after Tesla raised the price for its Model 3 and Model Y this week in China and other markets including the U.S.

The price hikes come after Tesla cut prices over the past few months to stoke demand.

Tesla CEO Musk signaled in April on an earnings call that the automaker will be targeting larger volumes of sales versus higher margins but said he expects the company “over time will be able to generate significant profit through autonomy.”

Tesla frequently adjusts its price to react to market conditions.

Tesla appears to be maintaining a higher price of its Model S and Model X in China to play in the premium segment of China’s electric car market.

But the U.S. firm is facing increasing competition in China from established players like BYD as well as upstarts such as Nio. However in China, there are not major competitors to Tesla in the price category the Model S and Model X are in.

Source: CNBC