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Tesla does a flip-flop by lifting Model Y car prices in China just a month after cutting them

Ryan Hogg   

Tesla does a flip-flop by lifting Model Y car prices in China just a month after cutting them
Stock Market1 min read
  • Tesla has raised the base price of its Model Y crossover in China, just a month after making cuts.
  • The price of a rear-wheel Model Y rose 0.8% to 259,900 yuan ($38,195.87) in the country.

Tesla has raised the starting price of its Model Y crossovers in China, just weeks after bringing in huge cuts that helped stoke demand among buyers in the reopening country.

The electric-vehicle maker has set a new base price of 261,900 yuan ($38,483.01) for the rear-wheel-drive version of the car-based SUV, according to its Chinese website. That's a rise of 2,000 yuan or 0.8%. The price of other Model Ys remains unchanged.

In January, Tesla twice slashed prices for its models in China, dropping the price of its Model Y by between 6% and 13.5% in a bid to boost demand at its Shanghai factory.

The price reductions have already been a huge success, going by a Wedbush survey of Chinese consumers who expect to purchase an electric vehicle this year. Nearly 70% said they've been positively influenced by the cuts to buy a Tesla.

Last month's price cuts in China were quickly followed up in the US days later, helping drive the surge in buyer interest.

Wedbush forecast that Tesla's stock could rally 35% this year, given that response. Shares in Elon Musk's carmaker are up over 68% this year so far as investors' appetite for tech stocks returns.

Tesla has increased its EV market share in the country to 12.5% in January from 9% in December, Reuters reported.


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