Tesla has announced an upcoming price increase for its Model Y electric vehicles (EVs) in various European countries.
Set for March 22, the adjustment will see prices rise by about 2,000 euros ($2,177) or the equivalent in local currencies.
This decision was shared via a post on the social media platform X on Saturday, marking a continued trend of price adjustments for the automaker.
The European price hike follows closely on the heels of a similar announcement for the U.S. market.
On Friday, Tesla revealed its plans to increase the prices of all Model Y cars in the United States by $1,000, effective April 1.
Prior to this, Tesla had already adjusted the prices for its Model Y rear-wheel drive and long-range variants on March 1, raising them by $1,000 to $43,990 and $48,990 respectively.
Elon Musk, Tesla’s CEO, highlighted the challenges faced by the manufacturing sector in a post on X in February.
Responding to his company’s announcement about the impending price rise, Musk noted, “This is the essential quandary of manufacturing: factories need continuous production for efficiency, but consumer demand is seasonal.”
The backdrop to these price adjustments is a competitive and challenging market environment.
Tesla has been engaged in a price war with its rivals for over a year, an endeavor that has impacted its profit margins.
Additionally, in January, the company issued a warning regarding a potential slowdown in sales growth for the current year.
This forecast is attributed to Tesla’s shift in focus towards the production of its next-generation electric vehicle, code-named “Redwood.”
This series of price increases and strategic shifts highlight Tesla’s ongoing efforts to balance manufacturing efficiency with market demand, amidst a landscape of intense competition and evolving consumer preferences.