Every time Tesla lowers or raises the prices of its vehicles in various markets, there's all sorts of speculation. However, in reality, it seems Tesla is just doing its homework and manipulating pricing and demand to coordinate with production and deliveries. While we may never know for sure, it seems Tesla has a firm grasp on demand for its vehicles, and it adjusts prices accordingly.

At any rate, according to a recent report by Teslarati, which was put together using information tweeted by Ray4Tesla (@ray4tesla) on Twitter, it doesn't seem like the recent Model Y price hike has impacted interest in the electric crossover in China. For those unaware, despite the Model Y's high sticker price compared to many China-made EVs, it has proven hugely popular in the country.


Based on Chinese media reports, traffic in Tesla's China showrooms hasn't slowed since the automaker raised Model Y prices. Moreover, the news agency interviewed some 20 potential Tesla buyers. Of the 20 people interviewed, 13 said they are willing to dish out the extra money to get their hands on a Model Y. Meanwhile, seven respondents are still thinking it over.

Of course, this is a very elementary survey of a tiny group of people. However, the point is, Tesla seems fully aware of the demand for its vehicles in global markets. If a car is selling incredibly well and people can't wait to get their hands on it, it may be okay to raise the price slightly without turning people away. Tesla has proven this in the past on several occasions.

At the same time, we don't really fully understand Tesla's big moves when it comes to demand and pricing. We may never have a complete grasp of it, nor will anyone else. What we do know is it's working for Tesla. If it isn't broke, there's no need to fix it. Since Tesla doesn't deal with franchised dealerships, it can make as many or as few pricing moves as it deems necessary, and any price change is just as easily reversible.

China is a huge market for Tesla, so we can only imagine the automaker isn't going to make any moves it feels will stifle progress. CEO Elon Musk said in the past (via Teslarati):

“China in the long term will be our biggest market, both where we make the most number of vehicles and where we have the most number of customers. I’d like to strike an optimistic note, and I’m very confident that the future of China is going to be great and that China is headed towards being the biggest economy in the world and a lot of prosperity in the future.”

What's your take on Tesla's constant pricing shifts? Do you have a theory? We'd love to learn about it by reading your comments.

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