Tesla plans to raise the prices of the cheaper versions of the Model Y in China, as a continuation of the price hike it put on the crossover's most expensive version in the country late last month.
(Image credit: CnEVPost)
Tesla (NASDAQ: TSLA) is about to raise the prices of the cheaper versions of the Model Y in China, as a continuation of the price hike of the crossover's most expensive version in the country by RMB 14,000 ($1,920) late last month.
Multiple Tesla salespeople said in their WeChat statuses yesterday that the Model Y's price is about to go up in China, saying it will be a continuation of the RMB 14,000 price hike for the Model Y Performance.
Local media outlet Jiemian cited Tesla's response today as saying that the company does plan to adjust the prices of other versions of the Model Y after the Model Y Performance price was raised by RMB 14,000 on October 27.
The Tesla Model Y is offered in three versions in China -- an entry-level rear-wheel drive version, a dual-motor all-wheel drive long range version, and a dual-motor all-wheel drive performance version -- and is currently priced at a starting price of RMB 263,900, RMB 299,900, and RMB 363,900, respectively.
The Model Y Performance was originally priced at RMB 349,900, and on October 27 the price was raised to RMB 363,900.
Tesla's response today didn't mention the timing or magnitude of the price increases planned for the other two versions of the Model Y. This looks like a temporary strategy to boost orders, as potential customers will want to buy before the price hike.
Tesla has a factory in Shanghai that currently has an annual capacity of more than 950,000 vehicles, its largest in the world, according to its third-quarter financial report released earlier last month.
Giga Shanghai began operations in late 2019 and started deliveries of the locally produced Model 3 in January 2020 and the locally produced Model Y in January 2021.
On October 1, Tesla launched the new Model Y with minor feature updates in China, adding improvements including multi-colored ambient lighting, a new dashboard trim, and new 19-inch wheels.
In the update, the base Model Y saw improved range and acceleration, while the Model Y Long Rang saw improved range. The key information about the Model Y Performance remained the same.
On October 15, Tesla announced that deliveries of the new Model Y in China had begun.
Tesla unveiled the new Model 3 on September 1. Sales of the new Model 3 officially began in China on October 19, and on October 26, Tesla said deliveries of the new sedan had begun in China.
The US electric vehicle maker sold 72,115 China-made vehicles in October, up 0.57 percent from 71,704 a year earlier, but down 2.64 percent from 74,073 in September, China Passenger Car Association (CPCA) data released on November 2 show.
Breakdown sales figures for the Model 3 and Model Y in China in October are expected to be available in the coming days.
($1 = RMB 7.2789)