Tesla has announced a price increase for the Model Y crossover in a number of European countries by around €2,000 or the equivalent amount in local currency.

Tesla's decision to revise European prices follows the automaker's announcement last Friday that it will increase prices for all versions of the Model Y in the US by $1,000 from 1 April. This is despite Tesla already raising Model Y prices by $1,000 on 1 March.

Tesla CEO Elon Musk said in February that factories need constant production to operate efficiently, but consumer demand is seasonal.

Tesla launched a price war with rivals more than a year ago. However, in January 2024, the company predicted "markedly lower" sales growth this year as it focuses on launching its next-generation electric car, codenamed Redwood.

Source: Reuters