China Sees a $690 Price Increase for Tesla’s Entire Model Y Lineup
In an uncommon move in the ongoing price war in the electric vehicle (EV) market, Tesla (NASDAQ: TSLA) has increased the cost of every model in its Model Y portfolio in China.
The American electric vehicle manufacturer increased the cost of the Model Y by RMB 5,000 yuan ($690) in China today.
In China, the Model Y is available in three different configurations. The standard rear-wheel-drive variant now costs RMB 263,900, up from RMB 258,900 the previous year—a 1.93 percent rise.
The all-wheel-drive, dual-motor Model Y Long Range Edition now costs RMB 304,900 instead of RMB 299,900, a 1.67 percent increase.
The all-wheel-drive, dual-motor Model Y Performance now costs RMB 368,900 instead of RMB 363,900, a 1.37 percent increase.
The delivery wait period for the three Tesla crossover models in China is still two to six weeks.
Tesla manufactures the Model 3 and Model Y at a plant in Shanghai. The Model 3 sedan’s pricing and wait times remained the same today.
With beginning prices of RMB 245,900 for the entry-level rear-wheel drive model and RMB 285,900 for the dual-motor, all-wheel drive, long-range version, Model 3 is available in China in two variants.
Ten days prior, on March 20, the local media site Cailian quoted a Tesla China insider stating that the business would raise pricing in China on April 1st, with an RMB 5,000 price increase for the Model Y. This was an indirect tease of Tesla’s most recent price hike.
Given that benefits like insurance subsidies expire at the end of March, the price increase means that consumers’ actual cost to purchase the Model Y might increase by as much as RMB 23,000.
Last month, Tesla made reductions on paid car paint, an RMB 8,000 insurance subsidy, and lower financing rates available in China.
The EV manufacturer said on Weibo shortly after the pricing change on Tesla’s that the gray paint, which had previously cost RMB 12,000, was now free for the Model 3 and Model Y.
Although it wasn’t disclosed on Weibo, Tesla’s Chinese website indicates that the black paint, which was previously free, is now an RMB 8,000 premium option for the Model 3 and Model Y.
Deliveries of the Model 3 will begin in January 2020, and it is the first model manufactured at Tesla’s Shanghai facility. The locally manufactured Model Y begins to be delivered in January 2021, one year later.
One of the best-selling models in China is the Model Y, whose monthly sales surpass those of many conventional gasoline-powered vehicles. Delivery of the Model 3 drastically declines as the locally made Model Y starts to arrive.
Based on data obtained, the Model Y sold 456,394 units in China for the entire year 2023, accounting for 75.6% of Tesla’s total sales of 603,664 units in China.
In 2023, the Model 3 accounted for 147,270 sales in China, or 24.4% of Tesla’s total yearly sales in that country.
Tesla sold 70,022 cars in China in the first two months of this year, with the Model Y and Model 3 accounting for 52,449 and 17,573 of those sales, respectively.
Following the Chinese New Year break in late February, BYD (HKG: 1211, OTCMKTS: BYDDY) revised several of its models, all of which saw considerable price reductions.
Several automakers have also been vying for customers’ business on price thus far this year, including Polestar (NASDAQ: PSNY), Nio (NYSE: NIO), Xpeng (NYSE: XPEV), Li Auto (NASDAQ: LI), Neta, and IM Motors.
One dollar is equivalent to 7.2213 RMB.
