Tesla Inc TSLA increases the prices of his Model Y vehicles in China after conducting a series of price cuts earlier in the year to stimulate demand.

What happened: Tesla’s China website stated that the Elon Musk-led company increased the price of the crossover vehicle by CNY 2,000 to CNY 261,900 ($38,567.45) on Friday (Beijing time).

Screenshot from Tesla China website

Previously, the Model Y vehicle sold for 259,900 CNY ($38,272.38) in China, according to a cached version of the same website. This corresponds to a price increase of almost 0.8%.

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Why it matters: According to the company, waiting times for the Model Y in China have increased Price reductions implemented in January.

Back then, Tesla also slashed the prices of its Model 3 variants, with the base model getting a nearly 28% discount in China.

The price cuts came after sales in China slowed to 55,796 units in December – a 44% decrease over the previous month.

During the company’s fourth-quarter earnings call, Musk noted that the price cuts had sparked a surge in demand. Musk said Tesla is making “small price increases” due to strong demand.

Price promotion: On Thursday, Tesla shares closed up 3% in the regular session at $207.32 and fell 1.6% in after-hours trading to $204 Data from Benzinga Pro.

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