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China EV war: Tesla’s US$289 increase signals end of price cuts, industry observer says
- Price increase ‘a gesture’ telling buyers that Tesla will not cut prices any more, Shanghai-based EV data provider CnEVpost’s Phate Zhang says
- Entry level Model 3 will cost 231,900 yuan, while the basic Model Y now starts at 263,900 yuan
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Tesla is increasing the price of its China-made electric vehicles (EVs) amid a plunge in profits in mainland China, four months after it sparked a price war among makers of new-energy vehicles (NEVs) in China by offering deep discounts on its cars.
The US carmaker has raised the prices of all variants of the Model 3 and Model Y made in Shanghai by 2,000 yuan (US$289) effective from Tuesday. The entry level Model 3 will cost about 0.9 per cent more at 231,900 yuan, according to an updated price list on Tesla’s website in China. The basic Model Y now starts at 263,900 yuan.
On January 6, CEO Elon Musk cut the prices of every variant of the Model 3 and Model Y by between 6 per cent and 13.5 per cent. The cheapest Model 3s were made cheaper by 36,000 yuan each, or 13.5 per cent, and cost 229,900 yuan.
“It is more like a gesture telling buyers in China waiting on the sidelines for more discounts that Tesla will not cut prices any more,” said Phate Zhang, founder of Shanghai-based EV data provider CnEVpost.
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