Tesla Surprises with Price Increase for Electric SUV Model Y, What’s Going On?

Tesla has previously resorted to reducing prices for its electric car models in the Chinese market in order to boost its declining sales, which have been significantly affected by the introduction of diverse and competitively priced products by its competitors. Therefore, the recent price increase for the Model Y by the American automaker has attracted attention.


China is one of the most lucrative car markets in the world that many brands are eager to serve, with a population of over 1.4 billion people, just having 10% loyal customers is already a jackpot.

This is precisely why many famous brands have partnered with various conglomerates in China to create joint ventures, in order to easily sell cars in this vast market, as well as launch discount programs and create special models exclusively for China.

Tesla, the king of electric cars worldwide, has also had to “lower itself” by reducing prices for many models, which they rarely do, simply because their sales have been seriously affected by competitors launching diverse products with great prices.

But on October 27, information from officials revealed that Tesla has increased the price of the high-performance Model Y by an additional 14,000 Chinese yuan, equivalent to 45 million VND, making the adjusted selling price of the car 363,900 Chinese yuan, equivalent to 1.18 billion VND. This recent price increase by the American automaker for the Model Y has attracted attention.

It seems that the production costs for the Model Y have increased significantly, which has prompted Tesla to raise the selling price for this highest-spec version.

Tesla’s price increase for the highest-spec Model Y is also an opportunity for many Chinese carmakers to launch a media campaign to attract customers from the American brand, and of course, the strategy of offering discounts has always been well executed by Tesla’s competitors.