Tesla Inc. TSLA has raised the price of the two cheapest trims of the Model 3 by $500 each. This is the second price increase by the company this month.
What Happened: The Palo Alto, California-based automaker has updated its website with the new prices for the Model 3.
The Model 3 Standard Range Plus is now priced at $37,990, up from the earlier $37,490. The Model 3 Long Range All-Wheel Drive previously sold for $46,490, now costs $46,990. The price for the Tesla Model 3 Performance remains unchanged at $55,990.
See also: How to Invest in Tesla Stock
Why It Matters: This is the third price change in Tesla vehicles in just two months. Earlier this month, the company marked up the prices of some of its Model 3 and Model S vehicles. The company has a differentiated, direct distribution network.
In February, Tesla slashed the prices of the base models of its Model 3 and Model Y vehicles.
Earlier in the day, it was reported that Tesla raised the price of the Model Y in China by RMB 8,000 (about $1,226) with immediate effect.
The Model 3 was first released in 2017, with production ramping up in 2018. Tesla has been able to sell every Model 3 it has produced in recent years, ending each quarter with more orders to fulfill.
Price Action: Tesla shares closed 4.8% lower on Wednesday at $630.27, but added almost 0.6% in the after-hours session.
Photo: Courtesy of Tesla
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