Tesla shares gain after Model Y price hike in U.S., Europe

© Reuters. FILE PHOTO: Model Y cars are pictured during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS/File Photo

By Chibuike Oguh

NEW YORK (Reuters) – Shares of Tesla (NASDAQ:) rose by nearly 7% on Monday after the automaker announced price increases for its Model Y electric vehicles across some European countries and the United States.

Tesla said prices of its Model Y vehicles will be increased by approximately 2,000 euros ($2,177) in some European countries effective March 22, according to a company statement on Saturday. It had announced on Friday price hikes for all Model Y cars in the U.S. by $1,000 effective April 1.

Tesla shares rose as high as $174.72, up nearly 7%, on Monday following the announcements. The stock is on track for its second straight day of gains after dropping to a near 10-month low last week. It was last up 5.8% at $173.13.