Source: Gasgoo Author: Yara
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On March 20, Tesla confirmed to Reuters that starting from April 1, the company would announce a price increase in the Chinese market and increase the price of the Chinese-made Model Y by 5,000 yuan ($694.55). At the same time, the current official existing car insurance subsidy policy of 8,000 yuan and the car paint exemption policy of up to 10,000 yuan will also expire on March 31.
Therefore, if insurance subsidies and other factors are included, Tesla’s maximum price increase in the Chinese market this time will reach 23,000 yuan.
Image source: Tesla
A few days ago, Tesla Model Y just announced a price hike in Europe and the U.S. On 15 March, Tesla said on its website that it would raise the price of all its Model Ys sold in the U.S. by $1,000 from 1 April. Then on 16 March, Tesla said on social media X that it would raise the price of its Model Y electric cars in some European countries from 22 March by around €2,000 ($2,177) or the equivalent in local currency.
Following the announcement of the price hike, Tesla shares posted their biggest one-day gain in more than a month. However, analysts at Deutsche Bank (Deutsche Bank) said in an investor report, “Given the persistently high inventories of the Model Y, we see Tesla’s price hike as an attempt to boost sales for the month, rather than a sign of strong demand.
Not only that, Goldman Sachs analysts led by Mark Delaney wrote in an investor report that Tesla’s sales will also be affected by reduced subsidies for electric vehicles in Europe, increased competition from Chinese companies, and slowing demand. Delaney noted, “We believe that while Tesla has a strong position in the EV and clean energy markets and will be well-positioned for growth over the long term, recent weakness in the EV market is weighing on earnings.
