Tesla Increased The Price Of Model 3, Model Y In China

The slight price hikes were caused by rising costs, the Chinese media say.

Nov 14, 2023 at 11:02am ET

Tesla has applied slight price increases to its refreshed Model 3 and Model Y electric cars in China, but it does not appear to be linked to demand and supply.

The move was expected and carried out in two steps. First, Tesla increased prices of the Model 3 Long Range AWD and Model Y Long Range AWD on November 9, by $206 (1,500 CNY or 0.6%) and $340 (2,500 CNY or 0.9%), respectively. Then, on November 14, a similar change was applied to the entry-level RWD versions of the Model 3 and Model Y. The changes do not include the Performance version of the Model Y.

Tesla Model 3/Model Y prices in China:

Model 3 RWD (LFP): $35,860 (261,400 CNY) - up 1,500 CNY or 0.6%
Model 3 Performance: $40,800 (297,400 CNY) - up 1,500 CNY or 0.5%
Model Y RWD (LFP): $36,550 (266,400 CNY) - up 2,500 CNY or 0.9%
Model Y Long Range AWD: $41,485 (302,400 CNY) - up 2,500 CNY or 0.8%
Model Y Performance: $49,922 (363,900 CNY) - no change

The general explanation behind the price changes is that Tesla responded to rising costs.

This is supported by the estimated delivery times, which remain the same at several weeks. Usually, Tesla increases prices when the estimated delivery time increases, and reduces prices when the estimated delivery time drops.

Model 3 RWD (LFP): 2-6 weeks
Model 3 Performance: 6-9 weeks
Model Y RWD (LFP): 2-6 weeks
Model Y Long Range AWD: 6-8 weeks
Model Y Performance: 2-6 weeks

The Tesla Giga Shanghai plant in China, which produces the Model 3 and Model Y for the Chinese market and for exports, currently has an installed manufacturing capacity of over 950,000 cars annually, according to the recent Q3 2023 financial report. Because it's the largest Tesla factory by volume, and very likely also the most profitable one, the situation in Shanghai is extremely important for the company.

We are carefully watching the price changes of the Model 3 because this might give us insight into the Tesla Model 3 Highland demand.