Tesla will raise Model Y prices in the US by $1,000 on April 1

TeslaThe automaker said on its website on Friday that it will increase prices for all Model Y vehicles in the United States by $1,000 on April 1.

“Prices will increase by $1,000 for all Model Y models on April 1,” Tesla said on its website.

On March 1, the company also raised prices for rear-wheel-drive Model Y and long-range vehicles by $1,000 to $43,990 and $48,990, respectively.

Tesla did not explicitly clarify whether the April increase would come on top of the March increase for rear-wheel and long-range models.

Tesla temporarily reduced the prices of some of its Model Y vehicles in the United States in February, after nearly a month of price cuts across Europe and China.

“This is the fundamental quandary of manufacturing: Factories need continuous production for efficiency, but consumer demand is seasonal,” CEO Elon Musk said in February, responding to a Tesla X post saying prices would rise in March.

Separately, Tesla said on Saturday that it will increase the price of its Model Y electric vehicles (EV) in a number of European countries on March 22 by about 2,000 euros ($2,177) or the equivalent in local currencies.

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

In January, Tesla warned of “significantly lower” sales growth this year as it focuses on producing the next generation of electric cars, codenamed “Redwood.”