Tesla Model S, Model X Long Range Price Increases Reach China After US Hikes

Tesla Inc TSLA has raised the prices of the long-range variants of the Model S sedan and Model X SUV in China, days after a similar price hike in the United States.

What Happened: The Palo Alto, California-based automaker has quietly updated the China website to reflect the increase in prices by about $4,638 each.

The Price Hike: The Model S Long Range is now priced at RMB 829,990 (about $118,538) and Model X Long Range is RMB 879,990 (about $125,679).

Earlier this month, Tesla customers in the U.S. faced a price hike for both the Model S and X long-range versions. Tesla already increased the price of the Plaid Model S by $10,000 earlier this year.

The Elon Musk-led automaker has also started accepting bookings for its locally built and more affordable variant of the electric mid-size SUV Model Y’s standard variant in China.

Musk had a month ago blamed industry-wide supply chain issues and semiconductor shortages for those price hikes.

Model S and X vehicles are the company's most expensive, flagship vehicles. The S and X recently underwent a refresh, with a new interior and exterior design for a more modern look along with efficiency and range improvements.

See Also: Elon Musk Says Tesla EV Price Hikes Happening Due To Supply Chain Issues

Why It Matters: As per cnEVpost, which first reported the news, Tesla's frequent price cuts in the past have usually been met with criticism from owners in China, while the company claims it is giving consumers a discount with the cost savings from local production.

China is key to Tesla’s future growth plans and to fulfilling its ambition to deliver 20 million electric vehicles annually within a decade. The world’s largest automotive market already contributes nearly 30% of Tesla's global sales and is its second-largest market after the United States.

Price Action: Tesla shares closed 0.43% lower at $650.60 on Thursday.

See Also: Tesla Records 85% Surge In California Registrations With Model Y Driving Growth

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.