Tesla raises the price of the base model Y by $295 in China
On February 9, information on Tesla China's website showed that the price of Tesla Model Y rear-wheel drive version was adjusted to RMB 261,900 from the original RMB 259,900, a price increase of RMB 2,000. Moreover, the pickup time has increased from the original 1-4 weeks to 2-5 weeks.
As for Model Y long range, high performance, and all models of Model 3, no price adjustment has been found yet. Meanwhile, the estimated delivery time for all Model 3 models remains the same at 1-4 weeks.
It is worth noting that on January 6, more than a month ago, Tesla China lowered the prices of its Model 3 and Model Y. The Model 3 was reduced by up to 36,000 RMB and the Model Y by up to 48,000 RMB, and the two models have been reduced to their lowest prices ever: 229,900 RMB and 259,900 RMB respectively.
In addition, on February 3, Tesla also raised the prices of Model Y Long Range and Model Y Performance in the U.S. market. I think it was the strong demand that prompted Tesla to raise the Model Y price to protect profitability. A few days ago, Tesla CEO Elon Musk said on the fourth quarter 2022 earnings call that the price cut brought a surge in demand, with orders reaching twice capacity in January this year. Tesla received more than twice as many orders as it produced in January, and set a delivery target of "close to 2 million" for 2023.
According to China Passenger Car Association (CPCA) data, Tesla sold 66,051 units in China in January, an 18% increase from the previous month and a 10.4% increase from the previous year, the best ever. For its bright results, the market will generally think that it is due to the significant price reduction. In response, China CPCA Secretary General Cui Dongshu said, "Tesla's price cut in January actually did not contribute particularly well to the month's sales growth, mainly because its export performance was particularly good."
The Model Y, which took the lead with a small price increase, is Tesla's best-selling model. 2022, the Tesla Model Y replaced its sibling Model 3, topping the global electric car sales list with 771,300 units sold, which was the first time the Model Y took the top spot. The Model Y was also more popular than the Model 3 in the Chinese market. 315,000 units of the former were sold in the country in 2022, compared to 124,000 units of the latter.