Tesla has announced a price adjustment for its Model Y Performance sport-utility vehicle in China, marking an increase of approximately $2,000, as reported on the company’s local website. The most advanced variant of the electric SUV will now be priced at 363,900 yuan ($49,740), up from its previous tag of 349,900 yuan, effectively reversing a reduction that took place in August. It is worth noting that this current price point still remains more economical than its earlier valuation.
Notably, the prices for the long-range and rear-wheel models of the Model Y remain unaltered. Two months ago, the US automaker had executed a reduction from 363,900 yuan to 349,900 yuan, concurrently implementing upgrades to certain features of the Model Y in China, a strategic move aimed at expanding its customer base.
Furthermore, Tesla recently introduced enhancements to its Model 3 sedan in September, extending its range capabilities. These adjustments in pricing and features, both domestically and on the international stage, are part of a broader initiative by Tesla to make their vehicles more accessible to a wider consumer base. The outcome of these strategic shifts will serve as an indicator of their effectiveness in driving sales.
In the ever-evolving landscape of the electric vehicle market, Tesla has been engaged in an intermittent price competition in China, the world’s largest electric-vehicle market. Signs of a potential slowdown in sales prompted Tesla to initiate this price war, which has been periodically interrupted with incremental increases.
In parallel, the Tesla Model Y Long Range version has also witnessed a price adjustment in the United States, now retailing at $48,990, an increase of $500 from its previous price of $48,490, according to information available on Tesla’s official website.
At the time of this publication, Tesla Inc stock (TSLA) has witnessed a surge.
Tesla Inc
Current Price: $207.22
Change : +1.46
Change (%): (0.71%)
Volume: 76.2M
Source: Tomorrow Events Market Data
The success of Tesla’s business strategy crucially hinges on its ability to maintain a competitive edge in terms of pricing and enhanced features. As competition in the electric vehicle industry continues to intensify, Tesla’s efforts to entice customers with more appealing prices and improved functionalities will be closely scrutinized. The ultimate measure of the effectiveness of these initiatives will be reflected in the sales figures, determining the trajectory of Tesla’s market presence in the months to come.
Source: Bloomberg
