Elon Musk announced on Twitter yesterday that Tesla is waiting for inflation to ease before starting to lower the prices of new cars. However, Tesla fans argue that as battery technology improves, the size of the battery will significantly decrease compared to before, reflecting in cost reductions and making Tesla’s prices more affordable.
The Model 3/Y in the Chinese market has seen several price adjustments thus far in 2022. Tesla has adjusted prices four times:
First adjustments:
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On March 10th, the Model Y Long Range and Performance versions were raised by 10,000 RMB and were sold at 357,900 RMB and 397,900 RMB, respectively.
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On March 10th, the Model 3 Performance version was raised by 10,000 RMB and was sold at 349,900 RMB.
Second adjustments:
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On March 15th, the Model Y Long Range version was raised by 18,000 RMB and was sold at 375,900 RMB.
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On March 15th, the Model Y Performance version was raised by 20,000 RMB and was sold at 417,900 RMB.
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On March 15th, the Model 3 Rear-Wheel Drive version was raised by 14,000 RMB and was sold at 279,900 RMB.
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On March 15th, the Model 3 Performance version was raised by 18,000 RMB and was sold at 367,900 RMB.
Third adjustments:
- On March 17th, the Model Y Rear-Wheel Drive version was raised by 15,000 RMB and was sold at 316,900 RMB.
Fourth adjustments:
- On June 17th, the Model Y Dual-Motor Long Range version was raised by 19,000 RMB, with the price increasing from 375,900 RMB to 394,900 RMB.
Currently, the prices for the Tesla Model 3 in China are as follows:
Currently, the prices for the Tesla Model Y in China are as follows:
Interestingly, these price increases have not affected Tesla’s demand. Tesla still has a large backlog of orders, and the delivery period for some models has reached five to six months.
Although Tesla has been significantly increasing prices over the past two years, their financial reports show an increasing gross profit margin, indicating that while rising commodity prices remain a problem, Tesla’s price increases have exceeded cost increases.
Tesla explains that when producing vehicles ordered today, it must increase prices based on the production costs of vehicles produced 6-10 months ago in order to spread the risk. However, it is clear that Tesla has overestimated the extent of cost increases at present.
<p>Tesla explains that when producing vehicles ordered today, it must increase prices based on the production costs of vehicles produced 6-10 months ago in order to spread the risk. However, it is clear that Tesla has overestimated the extent of cost increases at present.</p>
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.