Tesla Inc (NASDAQ:TSLA) is raising the prices of its Model Y vehicles in China after carrying out a series of price cuts earlier in the year to boost demand.
What Happened: Tesla’s China website indicated that the Elon Musk-led company jacked up the price of the Crossover vehicle by CNY 2,000 to CNY 261,900 ($38,567.45) on Friday (Beijing Time).
Screenshot From Tesla China’s Website
Previously, the Model Y vehicle sold in China for CNY 259,900 ($38,272.38), according to a cached version of the same webpage. This constitutes a price hike of nearly 0.8%.
See Also: How To Buy Tesla (TSLA) Stock
Why It Matters: The wait times for the Model Y in China rose after the company carried out price cuts in January.
At the time, Tesla also cut the prices of its Model 3 variants with the base model seeing a discount of nearly 28% in China.
The price cuts came after China sales slowed down to 55,796 units in December — a decline of 44% over the preceding month.
During the company’s fourth-quarter earnings call, Musk noted that the price cuts triggered a wave of demand. Musk said that Tesla was making “small price increases” on the strong demand.
Price Action: On Thursday, Tesla shares closed 3% higher at $207.32 in the regular session and slipped 1.6% to $204 in the after-hours trading, according to data from Benzinga Pro.
Read Next: Tesla Bull Flags This As Real Problem For Rival EV Manufacturers