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Electric vehicle giant Tesla Inc TSLA is no stranger to changing the prices of its EVs based on supply and demand. For the fourth time in two months, Tesla has updated the prices of its electric vehicles in the U.S.
What Happened: After reporting its fourth quarter financial results, Tesla CEO Elon Musk said demand was double the rate of production in January, which led to an optimistic forecast of potentially hitting two million vehicles sold in 2023.
“We think demand will be good, despite probably a contraction in the automotive market as a whole. So basically, price really matters,” Musk said on the company’s earnings call.
The company’s website now shows that the price of the Model Y has been raised by $1,000 to $58,990 according to a report from Reuters.
The Tesla Model 3 saw a price cut of $500 to $42,990.
Tesla raised the price of the Tesla Model Y Long Range earlier this month.
Related Link: Tesla Q4 Earnings Highlights: Revenue And EPS Beat, Cybertruck And Crypto Holdings Updates And More
Why It’s Important: The price changes come after Tesla cut prices in January across many of its models and in several geographic locations.
Tesla vehicles qualify for $7,500 in federal tax credits, with changes made to the cutoff price and the cap removed on the number of units sold.
Tesla may have lowered its prices before to qualify several models for tax incentives.
With the price changes, the Model Y and Model 3 are both cheaper than they were at the start of 2023 according to the report.
The price changes by Tesla have been controversial, as previous buyers of the vehicle have been upset that the resale value of their vehicles is changing.
Tesla previously raised prices due to demand in past years. The price cuts over the last year by the EV leader have been seen as a welcoming moment for the market, with more people able to afford Tesla vehicles and the company pushing towards its 1.5 million to 2.0 million sales forecast for 2023.
TSLA Price Action: Tesla shares are up 2.4% to $199.36 on Tuesday. Shares of the electric vehicle giant are up over 80% year-to-date in 2023.
Read Next: Ross Gerber Plans Run For Tesla Board Of Directors, ‘Doing This For All Of Us Retail Shareholders’
Photo: Shutterstock
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Image and article originally from www.benzinga.com. Read the original article here.