Tesla will raise prices for Model Y electric vehicles in parts of Europe By Reuters

(Reuters) – Tesla (NASDAQ:) said on Saturday it will increase the price of its Model Y electric vehicles (EV) in several European countries on March 22. The increase will be approximately two thousand euros.

The move, announced in a post on social media platform X, followed the automaker’s announcement on Friday that it would increase the price of all Model Y cars in the United States by $1,000 on April 1.

Still in the United States, on March 1, the company increased the price of its Model Y rear-wheel drive and long-range vehicles by a thousand dollars, to $43,990 and $48,990, respectively.

“This is the essential dilemma of production: Factories need continuous production to be efficient, but consumer demand is seasonal,” Tesla CEO Elon Musk said in February, responding to his company’s X post announcing that prices would rise the following month.

Tesla’s profit margins have been hurt by a price war with rivals that began more than a year ago.

In January, Tesla warned of “notably lower” sales growth this year as it focuses on production of its next-generation EV, codenamed “Redwood.”

(Reporting by Kanjyik Ghosh and Disha Mishra in Bengaluru)