On March 10, Tesla increased its prices for the Model 3 Performance, Model Y Long Range, and Model Y Performance by 10,000 yuan, according to Tesla China’s official website. Tesla CEO Elon Musk has responded that Tesla experienced “some of the most difficult supply chain challenges” and pressure was affecting production across the entire industry.
Tesla has followed suit in the US, increasing prices for the Model Y Long Range and Model Y Performance by $1,000, according to the US official website.
However, Tesla has been making frequent price adjustments for its models since last year, raising prices in China over eight times in the last year alone, for a cumulative price increase of more than 20%. At the beginning of this year, the Model Y Rear-Wheel Drive had a one-time price increase of over 20,000 yuan. Similarly, Tesla’s price in the US market had also been raised more than a dozen times.
Despite the price increase, the current new energy vehicle industry sales are still growing rapidly.
On March 8, the China Passenger Car Association released the latest auto sales figures in China, revealing that new energy vehicle exports in February totalled 45,300, indicating continued robust growth. Tesla China exported 33,315 vehicles, an increase of 339% year-on-year, and the retail sales in the Chinese market were 23,200 vehicles, an increase of 26.7% year-on-year.