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Tesla China’s recent price increase was due to rising costs: report

Credit: Tesla Japan/X

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Tesla China has provided some explanation about its recent price hike for the Model 3 Long Range and Model Y Long Range. As per the electric vehicle maker, the recent price cuts are due to cost increases. 

The EV maker’s comment was reportedly shared with local media outlet Elephant News, which quoted a Tesla customer service staff. “It is normal for vehicle prices to rise and fall. If the cost drops, then the price may come down,” the Tesla staff stated. It should be noted that Tesla has reduced its vehicles’ prices this year multiple times. 

Tesla China’s recent price increase has resulted in the Model 3 Long Range starting at RMB 297,400 ($40,819) before options. The Model Y Long Range, on the other hand, now starts at RMB 302,400 ($41,507) before options. The two vehicles previously started at RMB 295,900 ($40,615) and RMB 299,900 ($41,164) before options, respectively. 

While Tesla China staff may note that the recent price increase is due to rising costs, the small adjustment in the two vehicles’ prices could suggest that the electric vehicle maker was looking to motivate customers to purchase the Model 3 and Model Y quickly. The idea of an impending price increase, after all, could provide a sense of urgency for consumers. 

Industry insiders, for their part, have noted that Tesla China’s price increase may be a way for the electric vehicle maker to improve its margins. “Tesla’s price increase may be because it is currently under great profit pressure and is eager to restore gross profit margins,” insiders told the local publication.

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Tesla China’s strategy for this round of price increases to the Model 3 and Model Y is quite interesting. Typically, Tesla’s price adjustments in China are implemented quietly, with an update to the company’s website and a few posts on social media. This time around, however, Tesla China staff posted about the price increase on social media days before it was implemented. Details were also provided to local news outlets. 

China is an important part of Tesla’s global operations. Being the world’s largest EV market, strong sales in China could provide Tesla with enough tailwinds to allow the company to achieve its ambitious goals. This year, after all, Tesla is looking to hit 1.8 million vehicles, and by the end of the decade, the company is looking to achieve 20 million vehicles. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk shares ridiculous fact about Optimus’ hand demos

It appears that Optimus’ V3 iteration is still very much under wraps.

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Elon Musk recently revealed something quite shocking about the Optimus demonstration hand that was showcased at the 2025 Annual Shareholder Meeting. As per the CEO, the complex robotic hand that impressed the event’s attendees was not a component of Optimus V3 at all. 

Needless to say, it appears that Optimus’ V3 iteration is still very much under wraps. 

Optimus’s hand

Even in Tesla’s We, Robot event last year, the company showcased a robotic hand that seemed capable of performing complex tasks. A similar hand was showcased at the recent investor event. It was then no surprise that some attendees and EV community members assumed that the robotic component, which was very dexterous, was a preview of Optimus V3’s hand. 

As per Elon Musk in a recent post on X, however, this was not the case. While the robotic hand that Tesla showcased at the 2025 Annual Shareholder Meeting was already very impressive, it was still a V2 component. In response to a quote post from his mom Maye Musk, who noted that “Elon told me a few times that the hand is the most difficult part of the robot,” Elon Musk clarified that the impressive component was still from Optimus V2.

“This is just the V2 Optimus hand. The V3 hand is another level beyond this. Exquisite engineering,” Musk wrote in his post on X.

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Not like Tesla

Tesla is designing Optimus to be a potential replacement for humans in some of the world’s most delicate tasks, such as surgery. It is then extremely important for Optimus’ hand to be very dexterous and refined in its movements. This is something that even companies that are also producing humanoid robots have yet to accomplish fully. Musk highlighted this during the Annual Shareholder Meeting, when he discussed how Tesla is really the only company that can scale humanoid robots properly.

“You will see certainly many companies showing demonstration robots. There’s really three things that are super difficult about robots. One is the engineering of the forearm and hand because the human hand is an incredible thing, actually. It’s super dexterous. 

“So, engineering the hand really well, the real-world AI, and then volume manufacturing. Those are generally the things that are missing. One or more of those things are missing from other companies. So Tesla is the only one that has all three of those,” Musk said.

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Energy

Tesla starts hiring efforts for Texas Megafactory

Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage.

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Tesla's Megapack Factory in Lathrop, CA (Credit: Tesla)

Tesla has officially begun hiring for its new $200 million Megafactory in Brookshire, Texas, a manufacturing hub expected to employ 1,500 people by 2028. The facility, which will build Tesla’s grid-scale Megapack batteries, is part of the company’s growing energy storage footprint. 

Tesla’s hiring efforts for the Texas Megafactory are hinted at by the job openings currently active on the company’s Careers website.

Tesla’s Texas Megafactory

Tesla’s Brookshire site is expected to produce 10,000 Megapacks annually, equal to 40 gigawatt hours of energy storage, similar to the Lathrop Megafactory in California. Tesla’s Careers website currently lists over 30 job openings for the site, from engineers, welders, and project managers. Each of the openings is listed for Brookshire, Texas.

The company has leased two buildings in Empire West Business Park, with over $194 million in combined property and equipment investment. Tesla’s agreement with Waller County includes a 60% property tax abatement, contingent on meeting employment benchmarks: 375 jobs by 2026, 750 by 2027, and 1,500 by 2028, as noted in a report from the Houston Business Journal. Tesla is required to employ at least 1,500 workers in the facility through the rest of the 10-year abatement period. 

Tesla’s clean energy boom

City officials have stated that Tesla’s arrival marks a turning point for the Texas city, as it highlights a shift from logistics to advanced clean energy manufacturing. Ramiro Bautista from Brookshire’s economic development office, highlighted this in a comment to the Journal

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“(Tesla) has great-paying jobs. Not just that, but the advanced manufacturing (and) clean energy is coming to the area,” he said. “So it’s not just your normal logistics manufacturing. This is advanced manufacturing coming to this area, and this brings a different type of job and investment into the local economy.”

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Tesla Giga Shanghai just built its 5 millionth battery pack

The achievement highlights Giga Shanghai’s role as the automaker’s highest volume manufacturing complex.

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Credit: Tesla Asia

Tesla’s Shanghai Gigafactory has reached a major production milestone, with its five millionth battery pack rolling off the line this week. 

The achievement highlights Giga Shanghai’s role as the automaker’s highest volume manufacturing complex and primary vehicle export hub.

Giga Shanghai’s new milestone

Tesla announced the milestone on X and Weibo, sharing images from the facility where the five millionth pack was completed. Images showed the Giga Shanghai team posing for a commemorative photo with the facility’s five millionth battery pack. Several of the company’s executives congratulated the Tesla China team for its recent milestone, including SVP Tom Zhu, who wrote “Power up, team!” in a post on X.

While Tesla designs and assembles its battery packs in China, the cells themselves are supplied by local partner CATL and South Korea’s LG Energy Solution, as noted in a CNEV Post report. Tesla China has stated that its pack safety standards exceed industry norms several times over, with longevity engineered to outlast vehicle lifespans.

Giga Shanghai’s growing role

Construction of Giga Shanghai began in early 2019, becoming China’s first wholly foreign-owned auto manufacturing facility. Giga Shanghai’s first phase was completed within the year, producing Model 3 sedans by the end of 2019. It now produces both Model 3 sedans and Model Y SUVs for domestic and export markets, with an annual capacity approaching one million vehicles.

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Despite the record-setting battery milestone, Tesla China’s recent domestic results left a lot to be desired. As per the China Passenger Car Association, Tesla’s retail sales in October dropped 36% year over year to 26,006 units, the lowest since late 2022. Analysts attributed the decline to Giga Shanghai’s focus on exports last month, as well as the ramp of compelling rivals like the Xiaomi YU7.

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