May 3, 2023: Tesla hiked the price of a few cars in key markets, which include the U.S. and China, after several slashes this year.

Elon Musk’s electric vehicle firm increased the cost of vehicles, including its Model 3 and Model Y, in the U.S., China, Canada, and Japan.

In China, Tesla’s Model 3 costs 231,900 Chinese yuan ($33,549), up from the last price of 229,900 yuan, according to the firm’s website. The Model Y is 2,000 yuan higher at 263,900 yuan, while the long-range and performance editions of the car also cost 2,000 yuan higher.

In the U.S., the Model 3 and Model Y series of vehicles now cost $250 more. The Model 3 begins at $40,240, while the Model Y is priced at $47,240.

Tesla also hiked the price of a few of its cars in Japan and Canada.

Despite the rises, the costs of Tesla’s vehicles remain less than at the start of the year because of rounds of price cuts worldwide, including in China and Europe, to stoke demand.

Tesla CEO Musk signalled in April on an earnings call that the automaker will target larger sales volumes versus higher margins. Still, it said he expects the company “bonus will be able to generate significant profit all over the autonomy.”

Tesla adjusts its prices frequently, reacting to market conditions.

Other electric carmakers are closely watching Tesla’s pricing strategy, with a few analysts saying the U.S. firm has sparked a cost war with its cuts.

Not every automaker is being taken into price cuts, therefore. William Li, CEO of Chinese upstart Nio, told the previous month that the company would keep its prices high.

Tesla’s price reductions this year have come between an uncertain macroeconomic environment and issues that consumers will cut back on large ticket purchases such as cars. But Tesla also faces heightened competition from traditional automakers such as Ford in the U.S. and EV companies such as Nio, Xpeng and Warren Buffet-backed BYD in China.