Perhaps other companies will follow Tesla
Tesla has increased the price of the Model Y Long Range AWD in China by $280. This is the third price increase in a row in less than two weeks – since November 9, when Tesla raised the price of the Model Y LR by $350.
Tesla sales staff told local media that the increase is a “price correction” following a price cut in August. Moreover, production costs are rising and price increases may continue in the future.
Tesla began slowly raising prices on October 27, when the top-spec Model Y AWD Performance went up $2,000. This was followed by a price correction on November 9, when the price of the Model Y AWD Long Range increased by $350. A week later, on November 14, the entry-level Model Y RWD also increased in price by $350.
The price of the updated 2024 Model 3 (Highland) Long Range was increased by $210 on November 9, and the following week, on November 14, the rear-wheel drive version also increased in price.
This comes after months of a price war in the Chinese electric vehicle segment, which began in November 2022 when Tesla cut prices on its lineup by 11%, and continued in January when the US automaker cut prices on some models by 13%, effectively kick-starting the effect domino, as many local competitors had to follow suit.