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Tesla increases prices of expensive models as fears rise over profits

Electric-car maker lifts price of premium Model S and X in US by $2,500, reversing earlier cuts

Tesla has raised US prices on its two most expensive models, hours after shares fell following concerns its aggressive price-cutting policy is eating into profits.

The electric-car maker has been bringing down prices in the US this year in order to drive demand and help fill its factories in California, Texas, Germany and Shanghai.

The move has triggered fears of a broader price war in the electric vehicle market, putting pressure on thin profit margins that established car brands are making on their battery models.

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