Tesla Raises Prices of Model Y High-Performance Cars in China, Here’s Why

Tesla Inc (NASDAQ: TSLA) announced Saturday that it will increase the value of its Model Y Performance car in China by $1,552.

What happened: According to the report announced on Chinese microblogging Weibo, the new value of the Model Y will be 387,900 RMB.

Tesla reported an uptick in domestic shipments from China in August. The company shipped 12,885 units, an increase of nearly 50% since July, when deliveries fell 69%.

In March, the company raised the value of the Model Y by about $1226, the value increase announced through Grace Tao, Tesla’s vice president of external affairs.

The Model Y went on sale in China in early 2021 and collected enough orders to exhaust stocks in the first 3 months of the year. At the time, the vehicle was priced at RMB 339,900.

Last month, Tesla’s Giga Shanghai reached a steady 1,000 Model Y car production.

The production rate of the Model Y at Giga Shanghai is higher than that of the Model 3, which is produced at 800 cars a day.

Giga Shanghai has Tesla’s export center, as evidenced by the July sales knowledge in China reported through the China Passenger Car Association. The electric vehicle giant exported about 74% of the cars it made to China.

Tesla accounted for 3. 9% of Battery Electric Vehicle sales in July in China, up from 12. 6 in June.

Tesla faces a fierce festival of Chinese rivals such as Xpeng Inc. (NYSE: XPEV), Nio Inc. (NYSE: NIO), Li Auto Inc (NASDAQ: LI) and BYD Company Limited (OTC: BYDDF).

In early April, the company faced protests from Telsa homeowners at the Shanghai Motor Show related to the car’s poor quality and concerns about protection.

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