Tesla China raises Model Y performance version price, opening road for Nio, Li Auto, Xpeng to chase lofty sales goals

The 14,000 yuan (US$1,917) increase comes after Tesla reported a 32.8 per cent month-on-month sales decline on the mainland in September.

The move could signal a shift to prioritising profit over volume, analyst says

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A visitor tries out a Model Y at a Tesla booth during the World Internet of Things Exposition in Wuxi, China, on October 21, 2023. Photo: Bloomberg

Published: 1:29pm, 27 Oct 2023

Tesla has rescinded a discount on the performance edition of its Shanghai-made Model Y sport-utility vehicle (SUV), just 10 weeks after the US carmaker slashed the price to lure mainland consumers.

The increase comes after Tesla reported a 32.8 per cent month-on-month sales decline on the mainland in September.

The car is priced at 363,900 yuan (US$49,735) as of Friday, up 14,000 yuan from Thursday, Tesla China announced on its website. The company had slashed the price by 14,000 yuan to 349,900 yuan on August 14.

“The price change reflects that Tesla is shifting its focus to profitability from sales volume in China,” said Gao Shen, an independent analyst in Shanghai. “The price cut will ease pressure on some Chinese rivals such as Nio and Xpeng.”

A truck transports new Tesla cars at its factory in Shanghai, China on May 13, 2021. Photo: Reuters

Tesla did not give reasons for the price hike and made no further price changes.

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