Tesla raises prices of Model 3 and Model Y again in mainland China to tame demand amid production shortage

The American electric car maker raised the prices of its Shanghai-made vehicles for the second time in a matter of weeks

Analysts said the move was aimed at addressing a widening gap between capacity and demand

Reading Time:3 minutes

Tesla has habitually adjusted the prices of its cars since it began building the Model 3 in Shanghai two years ago. Photo: Reuters

Published: 8:00pm, 31 Dec 2021Updated: 9:40pm, 31 Dec 2021

Tesla has raised the price of its Shanghai-made Model 3 and Model Y vehicles for the second time in just over a month amid soaring demand for its electric cars.

The announcement came shortly before China’s market regulator said Tesla will recall nearly 200,000 vehicles delivered to mainland customers between 2015 and 2020.

The California-based carmaker announced on Friday that its entry-level Model 3 assembled at the Gigafactory 3 in the Lingang free-trade zone would be priced at 265,652 yuan (US$41,678) after subsidy, up 10,000 yuan, or 3.9 per cent.

The price increase followed a rise of 4,752 yuan on November 24.

The basic edition of the Model Y sport-utility vehicle (SUV) jumped 21,088 yuan, or 7.5 per cent, to 301,840 yuan. Its price had also climbed by 4,752 yuan on November 24.

The SUV no longer qualifies for government subsidy because Beijing only provides this for new-energy vehicles (NEVs) priced below 300,000 yuan.