Tesla Raises Prices Of Certain Models In US

(RTTNews) - Tesla Inc. increased the prices of its Model S and X premium electric vehicles in the United States, its website shows. Since the beginning of the year, the luxury electric carmaker has been trimming vehicle prices with a view to boost demand amid rising competition from rival EV makers.

As per reports, the prices of both models still are lower than it costed at end of the first quarter.

The price hike comes after the company reported weak profit in its first quarter in line with the Street estimates, even as revenues grew in double digit percentage.

As per the company's website, Tesla lifted price of each variant of its high-end models by $2,500. The Model S now start at $87,490 and X at $97,490.

Tesla's performance versions of both Model S Plaid and Model X Plaid are now priced at $107,490, higher than earlier.

Since January, Tesla has been slashing prices globally amid slowing demand for electric vehicles, recession fears and higher interest rates, including at least six times in the United States .

Tesla in January had reduced its electric vehicle prices in the U.S. and Europe, nearly a week after it slashed prices at its biggest international market in China.

The company in early March slashed prices of its Model S sedan and Model X SUV vehicles in the United States days after reporting weak deliveries for those models.

Last week, Tesla slashed the price of its vehicles in Europe, including Germany and France, aiming to boost demand, amid an improvement in its production capacity.

Chief Executive Elon Musk earlier had said that Tesla would focus on bringing prices down to drive demand and that it had seen improved demand for certain models following their price cuts.

"The desire for people to own a Tesla is extremely high. The limiting factor is their ability to pay for a Tesla," Musk earlier said.

Tesla is facing challenges as higher borrowing costs weigh on buyers and rivals offer more electric options.