Tesla raises Model Y prices again amid strong demand, Long Range SUVs to cost 5 per cent more
- SUV’s Long Range edition will now sell for 394,900 yuan, up from 375,900 yuan previously
- US carmaker’s move suggests ‘it must have already secured strong orders’, analyst says
Tesla has raised the price of its Shanghai-made Model Y SUVs several times this year. On March 17, it raised price of the Model Y’s Basic Edition by 15,060 yuan to 316,900 yuan. The Long Range edition will now sell for 394,900 yuan, up from 375,900 yuan previously, the carmaker said on Friday.
“Since Tesla is confident about hiking the price of its vehicles, it must have already secured strong orders for the Model Ys,” said Phate Zhang, founder of Shanghai-based technology portal CnEVpost. “The Model Y is now favoured by many young Chinese customers, who are keen on owning an electric car.”
Tesla ships first EVs abroad since lockdown halted Shanghai production
Last month, it sold only 5,875 units of the bestselling SUV, down by 53.8 per cent from a year ago because of disruptions caused by the lockdown. Buyers of the Long Range edition, which has a driving range of 660 kilometres on a single charge, will have to wait 20 to 24 weeks for deliveries, Tesla said on its China website.
“Some buyers of the Model Y Long Range edition are willing to pay the extra 19,000 yuan to own it, but they hope the SUVs can be delivered quickly,” said Tian Maowei, a sales manager with Yiyou Auto Service in Shanghai. “Many of them are determined to own a Model Y and will still place an order for it, despite the long waiting time.”
Tesla’s Shanghai plant hits snag as lockdown strains supply chain
The price hike also comes amid a steep decline in car sales in Shanghai over the past two months. New car sales in mainland China’s commercial capital dived 95.2 per cent year on year to 2,603 units in May, according to data compiled by automotive news portal Auto Home. In April, car sales in Shanghai stood at 1,205 units, representing just 2 per cent of the volume in the same period last year.
Analysts, however, predict the carmaking industry will be restored to pre-Covid-19 levels in July.
The city relaxed a two-month citywide lockdown on June 1, and city officials hope its backbone industries – such as the automotive and semiconductor sectors – can recover quickly and drive its beleaguered economy forwards.
Tesla also raised prices for all its models in the US a day earlier, in response to persistent global supply chain problems and soaring raw material costs.
