Tesla is raising the price of Model Y slightly in China to adjust to the strong demand in the country. After a sharp and significant price cut at the beginning of January, the company was faced with tens of thousands of orders, which caused a delay in the delivery of cars to customers.
Tesla continues to slowly increase Model Y prices in China as it faces very strong demand. The company increased the price of the Long Range and Performance variants by CNY 2,000 (about $292). Model Y now starts at CNY 311,900 (about $45,500) in Long Range configuration and CNY 361,900 (about $52,800) in Performance. This is the second price increase this month. In early February, Tesla raised the price of the base Model Y also by CNY 2,000, to CNY 261,900 (about $38,200).
Demand for Model Y in China began to rise after the company significantly reduced prices on all configurations on January 6. Tesla Global Vice President Grace Tao explained that the company's price cuts responded to the country's call for practical action to promote economic development and unlock consumer potential in 2023, which will be especially relevant this year due to the difficult economic situation.
These price cuts have greatly increased demand for the cars, and Chinese consumers were queued up at Tesla stores and calling store employees to order one. As a result, waiting times for vehicle deliveries have increased as apart from China, Giga Shanghai also delivers to other markets around the world. Although Giga Berlin in Germany is making a significant contribution to supporting European sales, there are still not enough vehicles to meet the increased demand due to price reductions.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.