Elon Musk's Tesla Makes Another Surprising Move On Vehicle Prices

For the second time in a month Tesla - (TSLA) - Get Free Report is raising prices on some of its vehicles.

Elon Musk’s electric vehicle company increased the price of all of its models except the lowest level Model 3 on Thursday, according to the company’s website.

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Tesla raised the prices of the Model S and X by $1,000 and Model Y by $250, which are between 0.5% to 1.1% increases across the different vehicle models and variants.

Tesla prices were last raised less than a month ago on April 19, but the company has been changing the prices consistently throughout 2023. The vehicles are still considerably cheaper than they were priced entering the year, ranging from 16% to 19% among the higher-priced S and X models and up to 23% for the Model Y.

Musk has mentioned his desire to sacrifice profit for sales volume.

“It's better to shift a large number of cars at lower margin and harvest that margin in the future as we perfect autonomy,” Musk said on a conference call in April.

The constant price shifts are a sign that Tesla continues experimenting to find the sweet spot for their founder’s desire between profitability and sales volume. This comes after Tesla fell short of several sales expectations over the last few months.

The Tesla Model S and X start at $88,490 and $98,490, respectively. The ‘Plaid’ versions of each, which come with heightened performance, both go for $108,490. The Model Y starts at $47,490, and goes for $50,490 for its long-range variant, and $54,490 for its performance variant.