Tesla Raises Price Of Low-End Variant Of Its Affordable Model 3 EVs In China By 6%

Tesla Inc’s TSLA affordable locally-made Model 3 sedan’s rear-wheel-drive variant now costs about 6% extra in China, reveals the electric vehicle maker’s website.

What Happened: The electric fastback midsize four-door sedan is now priced RMB 15,000 ($2,323) more at a ticket price of RMB 250,900 ($40,144).

Delivery for the rear-wheel-drive variant is expected to take place in the first quarter of the next year for vehicles booked now.

See Also: Tesla Slashes Model 3 Standard Range Price In China

Why It Matters: China is a key market for Tesla outside the United States. The company has been making the mid-size sedan Model 3 in Shanghai since late 2019.
The electric vehicle maker had in July this year slashed the price of the Model 3 Standard Range variant.

Tesla has so far navigated through the chip crisis well but had in October warned “parts shortages” have factories running below capacity. 

On  price hikes, Tesla Chief Financial Officer Zach Kirkhorn told investors in a post-earnings call that there’s "an awakening" for electric vehicles and “it's caught us a little bit off guard.”

Price Action: Tesla shares closed 0.68% higher at $1,096.38 a share on Thursday.

Photo: Courtesy of Tesla