Tesla raises prices of made-in-China Model Y SUVs by more than US$1,200 in sign ‘it is comfortable with sales’
- Model Y’s Long Range version will now sell for 347,900 yuan (US$53,350), up from 339,000 yuan on January 1, while its Performance Range now sports a price tag of 377,900 yuan
- Price rise shows that Tesla is comfortable with the sales of the Model Y: North China University of Technology analyst
Tesla raised the prices of its made-in-China Model Y sport-utility vehicles (SUVs) by 8,000 yuan (US$1,227) on Wednesday, which suggested it was comfortable with the sales of the car, an analyst said.
“The price rise shows that Tesla is comfortable with the sales of the Model Y,” said David Zhang, an analyst with North China University of Technology’s research centre for automobile industry innovation. “Technically, it is using pricing to ease a supply shortage amid a buoyant market for its products,” he added.
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The carmaker’s Gigafactory 3 in Shanghai’s Lingang free-trade zone was facing an uphill task when it came to assembling enough Model Ys to fulfil orders.
Last year, Tesla delivered about 140,000 Model 3s to customers in mainland China, accounting for about an eighth of the country’s total EV deliveries, which hit 1.17 million units in 2020.
Its operations hit a speed bump last month after its executives were grilled by regulators over safety issues and incidents reported by consumers. The company said it was strengthening the internal management at its Shanghai factory to better safeguard consumer rights.
The Wall Street Journal reported last week that Beijing had restricted the use of Tesla vehicles by military staff and employees of key state-owned companies due to security concerns. The company was found to use cameras and ultrasonic sensors inside its cars, the report said.
Speaking at the China Development Forum on Saturday, Elon Musk, Tesla’s chief executive, downplayed the concerns and dismissed speculation that its vehicles could be used for spying.