Tesla’s efforts to reduce costs: Raised prices on cars
Elon Musk’s electric car company Tesla has increased the prices of Model X in the US. The company, aiming to reduce production costs, had stated last month that material and labor costs used in vehicle production reached their lowest level in the fourth quarter.
Tesla, the electric vehicle company founded by Elon Musk, raised the prices of Model X cars in the US by $5,000.
According to information available on the company’s website, the price of the Model X all-wheel-drive vehicle increased from $79,990 to $84,990.
The price of the higher version, Plaid, also increased from $94,990 to $99,990.
The company has not made an official statement regarding the reasons for the recent price increases.
CANADA HAD ALSO RAISED PRICES ON ALL MODELS
In December 2023, Tesla had also increased the prices of Model S by $5,000 and raised the prices of all models in Canada starting from February 1, 2024.
EFFORTS TO REDUCE COSTS
Tesla, aiming to reduce production costs, had stated last month that material and labor costs used in vehicle production had reached their lowest level in the fourth quarter due to the decrease in raw material prices.
DECLINE IN NET PROFIT
In its financial results for the fourth quarter of 2024, Tesla saw a limited increase in revenue while experiencing a significant decrease in net profit.
The company’s revenue increased by 2% compared to the same period last year, reaching around $25.7 billion.
However, Tesla’s net profit decreased by 71%, falling to $2.3 billion.
In the fourth quarter of 2023, the net profit of the US-based electric car manufacturer was recorded as $7.9 billion.
