Technology

Tesla hikes China-made Model Y price again — by more than $2,000

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Customers experience new energy electric vehicles at a Tesla store in Shanghai, China, On December 4, 2021.
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Tesla raised the price for its cheapest Model Y car in China by 15,060 yuan ($2,372) on Thursday, following two consecutive price hikes for more expensive versions in just over a week.

The standard China-made Model Y now costs 316,900 yuan ($49,932), up from the previous 301,840 yuan ($47,559) on Tuesday, according to data tracked by CNBC. While the cheapest model had remained the same price since January, Tesla recently raised prices for the long-range and performance versions.

The performance Model Y has seen its price rise by 7.7% since January, with the long-range version up by 8% over that time. The price of the cheapest version has climbed by 5% with Thursday’s increase.

The consecutive price hikes come as inflation has risen globally and a spike in Covid-19 cases in China disrupts business activity.

Tesla CEO Elon Musk recently warned that “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics.”

Reuters reported Wednesday that Tesla is suspending Shanghai factory operations for two days, as China tightens coronavirus restrictions to stem its recent Covid-19 outbreak.

Tesla did not immediately respond to a CNBC request for comment about the report, or the price increases.

Major cities in China such as Shenzhen and Shanghai have rolled out strict Covid-19 regulations, causing some factories to halt production and putting even more pressure on stressed supply chains. Crucial materials such as semiconductors also remain in short supply.

China is an increasingly important market for Tesla. In 2021, the country’s share of Tesla’s total revenue rose to 26% from just 12% in 2019.

Tesla and Chinese automaker BYD dominate the fast-growing Chinese electric vehicle market.

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