After months of repeated price cuts, Tesla has raised the prices of some of its electric vehicle offerings in China to stay competitive.
Tesla (NASDAQ:TSLA) has raised the price of its new Model S and Model X electric cars in China by 19,000 yuan ($2,751). The company’s website on Friday reflected an increase in product prices, which comes on the heels of higher prices for its other vehicles.
Tesla Model S and X EVs will retail for 808,900 yuan and 898,900 yuan in China
As it is, Tesla’s model costs 808,900 yuan compared to its previous price of 789,900 yuan. In addition, the company’s S Plaid model also commands a steeper purchase price of 1,028,900 yuan compared to 1,009,900 before. Moreover, the Tesla Model X SUV is priced at 898,900 yuan, versus the previous retail price of 879,900 yuan.
Earlier in the week, Tesla also raised the price of its Model 3 and Y EVs in China and other markets, including the United States. The price increases for renewable energy-oriented multinational auto companies follow continuous price cuts. Over the past few months, Tesla has lowered the prices of its popular electric cars to induce more demand amid an increasingly competitive space.
Tesla slashed the price of its Model 3 sedan and its Model Y sport utility vehicle in the fourth quarter of last year, and has continued to do so after the first quarter of 2023. After scoring few deliveries late last year, the company saw the need for price cuts.
Musk on Tesla’s growth forecast
On Tesla’s Q1 2023 earnings call, CEO Elon Musk said the company would target higher sales volumes than higher margins. However, Musk also added that he expects his electric company to make a “big profit with autonomy” over time. As the outspoken business manager said at the time:
“We have taken the view that paying for larger volumes and a larger fleet is the right choice here in exchange for lower volume and higher margin. However, we expect that, over time, our cars will be able to generate significant profit through autonomy.”
Moreover, Musk too to explain For investors:
“We think we are laying the foundation here, and then it is better to ship a large number of cars with a lower margin and then harvest this margin in the future because we have complete independence. This is a very important point.”
The Tesla boss noted that the Model Y became Europe’s best-selling car of any type in the first quarter. He also revealed that the all-electric midsize SUV was the best-selling vehicle without a pickup in the United States during the same period. Musk noted that these accomplishments came despite production and delivery headwinds and commended the team. The CEO concluded his speech by saying that Tesla sought to continue making and selling as many cars as possible despite unfavorable macroeconomic parameters. Musk stressed that now is the right time for the company to consolidate its dominance in the electric vehicle industry, adding that it will remain growth-oriented.
In the first quarter of 2023, Tesla delivered 422,875 vehicles, surpassing the previous record of 405,278 in the fourth quarter of 2022.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.
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