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English|Tesla Hikes up Model Y Price in China

English|Tesla Hikes up Model Y Price in China
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Image Source: Visual China
BEIJING, June 17 (TMTPOST) — The price of Model Y Long Range version has increased to 394,900 yuan on Friday on Tesla China’s website, jumping by 19,000 yuan when compared with the price in mid-March.
The delivery period is around 20 to 24 weeks.
Tesla also adjusted the price offers of several car models in the United States, with the biggest price hike being around US$6,000 and the delivery period being as long as one year. After the adjustment, Model 3 Long Range version’s price soared by US$2,500, while the Model Y Long Range version increased by US$3,000. Model Y Performance version saw a price increase of US$2,000. Model S’s price soared by US$5,000 to over US$100,000. Tesla did not explain the price changes.
“The price changes were inevitable due to the surging price of raw materials, the chip supply shortage, EV battery supply shortage and the lack of labor due to the pandemic this year,” an industry insider said. Pundits believe that given the imbalance between supply and demand in the car industry and inflation, car companies have to increase prices to manage the cost.
“Some EV battery plants are negotiating with whole-car manufacturing plants on increasing the price of EV batteries in Q2,” a senior management executive of a new energy carmaker said.
Guotai Junan Securities estimates that the costs for making ferrous lithium phosphate and ternary polymer lithium batteries increased by 18% and 20% respectively between January and May.
【English|Tesla Hikes up Model Y Price in China】It is worth noting that many new energy car makers announced price increases in China when the prices of raw materials and EV batteries both increased in March. New energy cars such as BYD, Xpeng Motors and Leapmotor all announced that they would increase the prices of their EVs.

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