Tesla raises Model S and Model X prices in China

Credit: Tesla China

Tesla raised the prices of its two flagship electric cars in China on Friday, hiking the Model S and Model X by 19,000 Chinese yuan, or roughly $2,749.

The pricing adjustments have been a regular occurrence for Tesla in 2023, as it has fluctuated the cost of each of its vehicles in various markets countless times so far this year. This is the most recent adjustment to vehicles in China.

  • Tesla Model S – 808,900 Yuan or $117,053.75
  • Tesla Model S Plaid – 1,028,900 Yuan or $148,889.36
  • Tesla Model X – 898,900 Yuan or $130,077.41

It is the second price change of the week for Tesla, as earlier this week, the automaker adjusted prices on the Model 3 and Model Y in several markets, including the U.S. and China. In the U.S., the cars received a $250 increase.

Tesla launched deliveries of the Model S and Model X in Mainland China in late March.

It has been a strategy Tesla has used to pinpoint price levels that are ideal for demand and fit consumer budgets. CEO Elon Musk and other executives pointed out recently that the company regularly looks at pricing across markets and determines whether adjustments are necessary.

While the automaker has cut prices significantly when comparing them to last year, lower prices have their downsides. Automotive gross margins dropped below 20 percent, which had some analysts questioning whether Tesla’s price points were sustainable.

However, Tesla maintained that the margins were “manageable” and that there were no concerns regarding the drop.

Tesla evidently continues to refine pricing, and it seems no end is in sight. As the company continues to control most of the EV market globally, Tesla is truly in the driver’s seat when it comes to fluctuating and controlling pricing. Other companies have been forced to confront this with price cuts of their own.

However, other companies have chosen not to get involved in Tesla’s price war, which would be a tough hill to climb as the company also has the most robust charging infrastructure and most stable software systems, making them an ideal choice for consumers when offered at a lower price than others.

Tesla sold 75,842 units in China in April, an over 4,900 percent increase from last year, but a slight 14.66 percent decrease from March.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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