Tesla raises prices in China and shrugs off price war

  • While the Model Y’s price has risen by 1.9% in China, analysts say the move is unlikely to affect sales.
  • The U.S. automaker isn’t worried about the fierce price wars that have brought tears to the eyes of China’s electric vehicle (EV) industry.

Tesla has raised the price of its Shanghai-made Model Y car, breaking away from a price war between a host of local tram brands.

Tesla raises prices in China

According to Tesla’s local website, the base Y is now priced at 263,900 yuan (US$36,519), up 1.9% from the previous 258,900 yuan (US$35,808).

The price of the Long Range version has increased by 5,000 yuan, 1.7%, to 304,900 yuan, while the price of the Performance edition has increased by 5,000 yuan, 1.4%, to 368,900 yuan.

Prices for Model 3 cars assembled by Tesla at its Shanghai Gigafactory remain unchanged.

“The small price hike will have a limited impact on Tesla’s sales as many Chinese consumers still believe in its technology and quality,” said the sales manager of the local automobile company.

Also read: China’s Xiaomi joins the EV race with ‘dream car’ to take on Tesla

Also read: BYD and other Chinese automakers will use Nvidia’s new in-vehicle chip ‘Drive Thor’

Tesla withdraws from price war in China’s EV market

Since February, BYD, the world’s largest electric car maker, has slashed the prices of almost all of its models by 5 to 20% as competition in the overcrowded Chinese electric car market intensifies.

Many of BYD’s rivals, ­including Xpeng, Zeekr, and SAIC-GM-Wuling, General Motors’ three-way venture in China, have fol­­­­­lowed suit and reduced the prices of their bestselling models to compete in the cutthroat market.

The price adjustment sends a clear message to China’s electric car market that the U.S. automaker isn’t worried about a fierce price war.

Jennifer-Yu

Jennifer Yu

Jennifer Yu is an intern reporter at BTW Media covering artificial intelligence and internet governance. She graduated from The University of Hong Kong with a Master’s degree in Journalism. Send tips to j.yu@btw.media.

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