Tesla, Inc. (TSLA), the electric car maker led by Elon Musk, raised prices for several Model Y cars in the U.S. on Saturday, according to reports citing the company’s website.
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The company increased the price of the Model Y Premium all-wheel drive by $1,000 to $49,990. It also raised the price of the Model Y Premium rear-wheel drive by $1,000 to $45,990. Meanwhile, the Model Y Performance all-wheel drive now costs $57,990, up $500 from its prior price.
Notably, Tesla did not give a reason for the price hike.
Meanwhile, TSLA shares dropped 4.75% on Friday, closing at $422.24.
Price Hikes Come as Demand Stays in Focus
The move comes at a time when Tesla investors are watching demand, margins, and price trends very closely. In recent years, the company has used price cuts and other offers to support sales in a tougher EV market. As a result, any price increase can draw close market focus.
At the same time, the latest hike may help Tesla protect profit per car if buyers stay firm. However, if demand slows, higher prices could add more risk to sales of the Model Y, one of Tesla’s key cars.
Tesla last raised its Model Y prices in 2024, when it lifted prices across all Model Y cars by $1,000. In addition, the company raised the price of its most costly Cybertruck model by $15,000 last August, even as sales came in softer than hoped and recalls weighed on the brand.
Is TSLA Stock a Buy, Hold, or Sell?
Turning to the Street, Tesla Inc. has a Moderate Buy consensus, based on 18 analysts’ ratings. The average TSLA stock price target is $448.64, implying a 6.25% upside from the current price.
