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Tesla raises the prices of Model 3 and Y in China to tame the demand

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Tesla has raised the price of its auto Model 3 and Y produced in Shanghai for the second time in just over a month, due to the surge in demand for its electric vehicles.

The announcement came shortly before the Chinese market regulator revealed that Tesla will recall nearly 200,000 vehicles delivered to mainland China customers between 2015 and 2020.

The Californian automaker announced on Friday that the price of a Model 3 in lower edition assembled at its giant factory 3 in the Lingang Free Trade Zone will be $ 41,678 after the subsidy, an increase of 3.9%.

The price hike came in the wake of a 4,752 yuan hike on November 24, according to the “SCMP” newspaper, which was seen by Al Arabiya.net.

The base version of the Model Y SUV increased 21,088 yuan, or 7.5%, to 301,840 yuan. Its price increased by 4,752 yuan on November 24.

SUVs are no longer eligible for government subsidies, as Beijing only provides them for new energy vehicles priced below 300,000 yuan.

For its part, the Finance Ministry said China will reduce its subsidies for new energy vehicles by 30% next year.

The ministry said in a notice posted on its website that new electric vehicles will not be subsidized after 2022. Tesla did not provide any reason for the price increase today.

Eric Han, senior manager of the Chinese business consulting firm Suolei, believes that the growing popularity of auto Tesla in China has widened the gap between its production capacity and demand: “Higher prices aim to contain consumer demand and alleviate production problems.” added.

On the other hand, the Chinese market regulator revealed on Friday evening that Tesla will call back nearly 200,000 auto delivered to mainland China customers between 2015 and 2020, including 19,977 auto Model S imported, 35,836 auto Model 3 imported and 144,208 Model 3 sedans in Shanghai.

The State Market Administration said the defects can cause the trunk or hood to suddenly open during movement.

He added that it could also affect vehicle backup cameras.

The recall came four weeks after Tesla said it was recalling 21,599 Model Y SUVs built in Shanghai to fix a steering problem.

The number of SUVs participating in the recall represents about a quarter of the total Model Y assembled from January to October in Shanghai.

Tesla’s Shanghai plant, with an annual production capacity of at least 450,000 units, delivered a total of 52,859 vehicles in November, up 145 percent from last year.

But 21,127 units were exported in other markets outside the mainland, according to the China Passenger Car Association.

From January to November, Tesla delivered 250,141 vehicles to mainland China customers, a 120 percent increase over the same period last year.

Deliveries of new energy vehicles in China is expected to reach 2.4 million units quest’year, more than double the figure in 2020, accounting for about half of projected global sales of 5 million units in 2022, but the supply of chips for auto it may not be enough to sustain production. .

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