Tesla, Inc. TSLA walked the talk and raised prices of all variants of Model Y electric vehicles in China on April 1 as opposed to views from some quarters that the price-hike warnings were a gimmick.
What Happened: Updated pricing Tesla China’s website showed that the price of the three trims sold in the country – the rear-wheel drive, long-range all-wheel drive and performance variants has been raised by 5,000 yuan ($692), effective April 1.
The price adjustments are as follows:
- Model Y RWD: 263,900 yuan (up from 258,900 yuan, a 1.93% hike)
- Model Y LR: 304,900 yuan (up from 299,900 yuan, a 1.67% hike)
- Model Y Performance: 368,900 yuan (up from 363,900 yuan, a 1.37% hike)
The previous pricing was sourced from a CnEVPost story.
See Also: Everything You Need To Know About Tesla Stock
Why It’s Important: Tesla’s aggressive price cuts in China since late 2022 did not yield the desired effect of lifting volume growth but served only to start a price war in the country. The U.S. EV giant has found the going tough in China as the nimble domestic startups matched the price cuts. Warren Buffett-backed BYD Co Ltd. BYDDY BYDDF wrested the crown as the world’s biggest battery EV manufacturer from the Elon Musk-led company in the fourth quarter of 2023.
The price cuts have also impacted Tesla’s core auto margins in a big way and bullish analysts have called for stalling the price cuts and instead looking for other strategies such as advertising.
Expectations concerning Tesla’s first-quarter deliveries are muted as most forecast a rare year-over-year decline.
Tesla ended Thursday’s session down 2.25% at $175.79, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
