Tesla increases price of its Model Y electric cars

Tesla announced an increase in the price of its Model Y electric cars in a number of European countries, starting March 22, by about two thousand euros, or the equivalent of $2,177.

According to CNN, the announcement of the price increase comes after the automaker said on Friday in a post on the X platform (formerly Twitter) that it will increase the prices of all Model Y cars in the United States by a thousand dollars on April 1.

Tesla had raised the prices of rear-wheel drive Model Y vehicles and long-range vehicles by $1,000 to $43,990 and $48,990, respectively, on March 1.

“This is the basic dilemma of manufacturing: Factories need continuous production for efficiency, but consumer demand is seasonal,” Tesla CEO Elon Musk said last February, in response to a post from his company on the X platform announcing that prices would rise the following month.

Tesla’s profit margins were damaged by the price war with competitors that began more than a year ago.

Tesla warned in January that sales growth would decline significantly this year. It focuses on producing the next generation of electric cars under the name “Redwood”.