Tesla (TSLA, Financial) has announced a price increase for its Model X in the US market. The all-wheel-drive version now costs $84,990, up from $79,990, while the Model X Plaid is priced at $99,990, an increase from $94,990. This move follows a history of price adjustments in North America, including a similar $5,000 increase for the Model S last December and broader price hikes in Canada starting February.
Tesla did not specify the reason for the price changes but noted efforts to reduce production costs. The company reported that the average cost of materials and labor for manufacturing its vehicles fell to a low point in the fourth quarter of last year due to dropping raw material prices.
Contrastingly, Tesla is adopting a different strategy in China, offering significant discounts on the Model 3. These include an 8,000 yuan insurance subsidy and a 5-year zero-interest financing option as of February 5. This is part of Tesla's ongoing effort to remain competitive in the Chinese market.
However, Tesla's performance in Europe has been less promising. In January, new car registrations in Germany plummeted by 59% to just 1,277 units, marking the lowest monthly sales since July 2021. Analysts suggest that CEO Elon Musk's public support for Germany's far-right party, Alternative for Germany, might be affecting demand. The company also saw a decrease in sales in France by 63% and the UK by 12% during the same period.
