It is no longer a rumor whether Tesla will initiate price adjustment leverage in the Chinese market after announcing that prices are about to rise in the North American and European markets. On March 20th, a Beijing Business Daily reporter learned from Tesla China that the official price adjustment will be announced on April 1st this year, with the Model Y model's price increasing by 5000 yuan. As soon as the news came out, a netizen said, "It's definitely going to rise."
There are signs of Tesla's price increase in the Chinese market this time. On March 1st of this year, the Tesla Model Y rear wheel drive and long endurance versions were priced at $1000 in the North American market, respectively, to $439900 and $489900; On March 16th, Tesla announced on its official website that the Model Y model will increase by another $1000 in the North American market starting from April 1st this year; On March 17th, Tesla announced that it will increase the selling price of the Model Y model in some European countries by approximately 2000 euros or its equivalent in local currency.
In fact, the price increase of Tesla Model Y in the Chinese market this time, in addition to an official increase of 5000 yuan, the reduction of comprehensive discounts will further increase the selling price of the model. It is understood that Tesla launched a limited time promotion in March this year, which includes an official current car insurance subsidy policy of 8000 yuan and a maximum paint reduction policy of 10000 yuan. This policy will also end at the end of March this year. This means that after this price adjustment, the comprehensive price increase of Model Y can reach up to 23000 yuan.
At present, the price war in the domestic car market is becoming increasingly fierce, and many netizens have expressed that they cannot understand Tesla's reverse price increase operation. Since the beginning of this year, in order to further seize market share, car companies have frequently played the price reduction card. Among them, as the best-selling car last year, BYD attracted attention with a poster stating that "electricity is lower than fuel" and announced the launch of its Qin PLUS Honor Edition model under Dynasty Net. The starting price of the DM-i model was reduced to 79800 yuan, while the EV model entered the 100000 yuan range. Not only domestic brands, but also car companies such as SAIC GM Wuling and GAC Honda have joined the price competition, and as end dealers, they continue to increase sales by continuing to bargain.
Therefore, regarding the price increase of Tesla this time, netizens have a polarized view. Some netizens believe that "the domestic market competition is fierce, and Tesla's price increase is to give up sales to other brands." Another group of netizens say, "Every time Tesla's price increase is overseas, it is domestic."
It is worth noting that Tesla will also raise prices in the face of fierce competition in the domestic car market, which is not unrelated to its pressured profit performance. On January 25th of this year, Tesla released a financial report showing that its revenue was $96.773 billion last year, a year-on-year increase of 18.79%; The net profit attributable to common shareholders was 14.997 billion US dollars, a year-on-year increase of 19%; The net profit attributable to common shareholders under non GAAP was $10.882 billion, a decrease of 23% year-on-year. Tesla also experienced its first annual profit decline since 2017. Goldman Sachs analysts have said that the main adverse factors faced by Tesla include a larger than expected decline in car prices, increased competition in electric vehicles, and delays in products and functions such as FSD and third-generation platforms. Therefore, although the company has long-term growth potential, it faces significant risks in the short term.
However, compared to the "sudden attack" during the previous price adjustment, this round of Tesla's domestic price increase has been announced in advance to reserve time for consumers to take action. After Tesla officially confirmed the price increase time, a Beijing Business Daily reporter found that some Tesla salespeople have also posted relevant information on social media platforms and reminded customers that all current car promotions will end on March 31 this year. Yan Jinghui, a member of the Expert Committee of the China Association of Automobile Dealers, believes that "the fierce domestic market competition environment has also put some pressure on Tesla. Advance notice of price increases will also affect previously interested car owners, prompting some car owners to place orders and increase some sales."