Biz / Auto

Tesla raises prices of Model 3 and Y electric vehicles in China

Huang Yixuan
Prices increase in United States, Japan and China also, but to a lesser extent than in China.
Huang Yixuan

Tesla has raised the prices of its Model 3 and Model Y electric vehicles in China by 2,000 yuan (US$289) as of May 2.

The new prices for the Model 3 are now 231,900 yuan for the standard version and 331,900 yuan for the Performance version. The Model Y's new prices are 263,900 yuan for the standard range, 313,900 yuan for the Long Range version, and 363,900 yuan for the Performance variant.

In the United States, Japan, and Canada, the automaker has also increased prices, albeit to a lesser extent than in China.

Tesla CEO Elon Musk last month stated that the company would prioritize sales growth over profitability and hoped to achieve profitability after the widespread rollout of its autonomous driving software.

Tesla raises prices of Model 3 and Y electric vehicles in China
Dong Jun / SHINE

It previously started a price war, having regularly modified the price of its electric vehicles since the start of this year.

Musk has also said the company was willing to sacrifice margin for sales volume but was also looking to move prices back higher, where it can, to match deliveries with output.

As the global economy continues to recover, the automotive industry is experiencing a surge in demand, with several carmakers reporting increased sales in April.

In China, BYD continues to lead the way in the EV market, with sales of over 210,000 units in April, while other new players such as NIO, Xpeng, and Li Auto are also seeing growth. The industry is expected to shift away from price competition and toward more competitive product offerings as the market stabilizes.

According to data from the China Passenger Car Association, Tesla's Model 3 and Model Y have seen strong sales growth in China, with retail sales of the Model 3 reaching 43,000 units in the first quarter of 2023, a year-on-year increase of 27.3 percent, and the Model Y topping 95,000 units, up 26.7 percent.

The association said that the intensity of the price war gradually subsided in April, and consumers resumed rational consumption. The wait-and-see sentiment was alleviated, leading to a release of pent-up demand, which resulted in a stabilization and recovery of the overall automotive market.

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