Tesla raises prices of entry-level Model 3 and Model Y in China

Update: Added Tesla's response.

The price increases are based on next year's retreat of China's new energy vehicle subsidies, as owners who place orders now will need until 2022 to get deliveries.

(Image credit: CnEVPost)

Tesla's models have experienced several price hikes in China this year, and now the company has acted again.

Information on Tesla (NASDAQ: TSLA) China website shows that the latest price for the entry-level China-made Model 3 - the rear-wheel-drive version - is RMB 255,652, up by RMB 4,752 from the previous price of RMB 250,900.

Tesla's website clearly lists this as the post-subsidy price, stating that the model's pre-subsidy price is RMB 266,740, with private customers receiving RMB 15,840 in state subsidies in China and RMB 11,088 for non-private consumers or used for operation.

These subsidies will not be available to customers who add features to their vehicles that result in a price above RMB 300,000.

The price of the Model 3 Performance remains unchanged at RMB 339,900.

The price increases are based on next year's retreat of China's new energy vehicle subsidies, as owners who place orders now will need until 2022 to get deliveries, a Tesla source told nbd.com.cn.

Owners who have placed their orders before November 24 will not be affected for now, the source said.

(Screenshot of Tesla China website)

This comes just five days after the entry-level Model 3 price increase in China.

On November 19, information on Tesla's China website showed that the price of the entry-level Model 3 was raised by RMB 15,000 to RMB 250,900 from the previous RMB 235,900.

The range of the model has increased from the original NEDC 468 km to 556 km under CLTC, but its 0-100 km/h acceleration time has changed from the previous 5.6 seconds to 6.1 seconds.

In addition to the entry-level Model 3, the price of the entry-level Model Y - the rear-wheel-drive version - has been increased by the same RMB 4,752, from RMB 276,000 previously to RMB 280,752.

The prices of the dual-motor all-wheel-drive Model Y Long Range and Model Y Performance remain unchanged at RMB 347,900 and RMB 387,900, respectively.

Similarly, information on Tesla's website shows that the price shown for the entry-level Model Y is the post-subsidy price, which is RMB 291,840 before the subsidy.

Because the entry-level Model Y is sold out of available capacity this year and China's subsidies for new energy vehicles will be reduced next year as planned, Tesla lists the amount of subsidies available to consumers of this model for next year.

If a private consumer purchases the model, the subsidy is RMB 11,088, and RMB 7,761 for non-private consumers or used for operation.

Likewise, if the price of the vehicle is higher than RMB 300,000 due to additional features, the customer will not be eligible for these subsidies.

(Screenshot of Tesla China website)

Deliveries of the China-made Tesla Model Y Performance will begin in the near future, the company said on Weibo.

"Welcome new owners to the Tesla family and join us in accelerating the world's transition to sustainable energy," Tesla said, without providing more information.

Tesla says deliveries of Model Y Performance in China will begin soon