Following a dramatic increase in the price of full-line electric vehicles by Tesla in the United States, the long-range version of the Model Y in China has now also undergone a price increase. According to Tesla China’s official website, the Model Y is now priced at 394,900 yuan ($58,930) – up by 19,000 yuan. The official website shows that the price of both the rear-wheel drive and performance versions remain unchanged for now.
The move marks yet another price increase for the long-range version of the Model Y since March 15. Tesla’s Model Y is in short supply overseas, and firm CEO Elon Musk said that he was accelerating production of the RHD (right-hand drive) Model Y. He said he didn’t expect demand to be so high.
On June 16, Tesla significantly increased the price of all its electric vehicles in the US, and some models increased by as much as $6,000. Specifically the long-range version of Model Y rose from $62,990 to $65,990, and the performance version rose from $67,990 to $69,990.
As always, Tesla did not disclose the specific reasons behind the price increases, but escalating raw material and logistics costs are the most common factors across the industry recently.
Notably, as recently as the Q1 earnings call on April 21 of this year, Musk mentioned that Tesla would not raise prices in the near future because pricing at the time had taken into account expectations for cost increases, and that “current prices are for cars delivered in the next six to 12 months, which is our best estimate.”
In fact, Tesla has a large backlog of orders, with new orders for several of its models not due for delivery until 6 to 12 months from now. Tesla must therefore project cost increases when producing these cars.