According to a recent report published on Twitter by 42HOW (@42how_), Tesla has increased the price of its Model Y electric crossover in China. As reported by Teslarati, based on the information in the tweet, the price increase is 8,000 RMB ($1,226).
More specifically, the Telsa Model Y Long Range now starts at ¥347,900, up from the previous ¥339,900. The Model Y Performance carries a starting price of ¥377,900. It was previously priced at ¥369,900.
This can be seen as further proof that the Tesla demand cliff narrative is incorrect. Whenever Tesla lowers its prices, some folks suggest that it can't sell cars. However, the Model Y is in the top three for electric car sales in China. By increasing the crossover's price, Tesla is arguably proving it feels confident it can raise the price due to high demand, or perhaps it just can't keep up with the influx of orders.
We've argued in the past that Tesla can basically sell every car it manufactures. If it could make more cars, it could sell more cars. This is further proof of that. However, the larger proof is the fact that Tesla even chose to build a factory in China in the first place, and now it's building factories in Germany and Texas. With a demand issue at play, building multiple factories would be a terrible idea.
The Model Y launched in China this January 2021, and deliveries started early in the year. While it hasn't been on the market long, and it's more expensive than most rivals, it has proven to be one of the best-selling EVs in China.
In February 2021, the Tesla Model 3 took the second-place position among China's electric car sales, with the Model Y coming in at the three-spot. This was a huge surge from January, as the Model Y wasn't even in the top 20. Only the ~$5,000 Wuling Hong Guang MINI EV had higher sales numbers than Tesla's cars in China this February.
Tesla plans to launch the Model Y as its first made-in-Europe vehicle. Model Y production at Tesla's upcoming Gigafactory near Berlin is expected to begin later in 2021.