Tesla raised prices on its Model X and S cars by over US$20,000 in China, according to media reports.
Reuters said the raise, reported by automotive news website Electrek on Monday, made Tesla one of the first U.S. carmakers to hike prices in the wake of rising trade tensions.
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Model S and X prices were increased over the weekend by CNY150,000 to CNY250,000 yuan (US$22,600 to $37,600) depending on the version, Electrek reported.
Reuters noted the company in May cut up to $14,000 off its Model X in China after Beijing announced major tariff cuts for imported carss.
China had planned to reduce import tariffs from 25% to 15% from 1 July.
"Raising the prices is going to hurt sales, but money losing Tesla has to raise prices because they can't afford to fully absorb to the higher costs of tariff," CFRA research analyst Efraim Levy told Reuters. "Considering they claim to be capacity constrained, they should be able to shift sales else where."
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By GlobalData"I wouldn't wonder if Tesla is going to hike the prices in general, because the money is getting shorter and shorter. Cutting 9% of the jobs was a similar sign. I can't imagine, that Tesla can be in the black before 2020," NORD/LB analyst Frank Schwope said.
Tesla did not immediately respond to a request for comment by Reuters.
Other automakers would prices, Levy said.
