Tesla Raises Price for Model Y in China After Giga Shanghai Suspension

Tesla cars has raised prices again in China. Tesla's price hike comes after two other consecutive price increases.

This means that Tesla vehicles in China jacked up their prices three times this week and are becoming more and more expensive.

Tesla Raises Prices in China

The standard Tesla Model Y in China now costs $2,000 more. The previous price of Model Y before the price increase was at $ 47,559, now it went to 49,932.

Since January, Model Y has increased by 7%. While Tesla's long-range version experienced a hike of 8%.

Tesla consumers in China are experiencing higher prices for Tesla vehicles due to the widespread Omicron variant in COVID.

The COVID situation in China is reportedly getting worse. The country has locked down multiple cities, halting business operations, and closing public transportation.

Tesla's Giga Shanghai has also been affected by the ongoing lockdowns in China. The location in Giga Shanghai belonged to one of the hot spot areas for COVID, thus the operations got suspended.

Elon Musk recently tweeted about this problem, noticing the increased price hike due to inflation and market pressure in raw materials and logistics.

Logistics around the world have not resumed optimal operations. Delays have become a norm since the pandemic happened. On top of that, geopolitical conflicts are now affecting travel and oil prices.

Aside from all of that, since 2020, the global market has endured a chip shortage that is struggling to keep up with the scarcity of supply and ever-increasing demand from consumers.

According to CNBC, it has reported that the Tesla Giga Shanghai was back in minimal business operations after the two-day suspension from the outbreak.

Tesla is not the only company that is suffering from business suspension due to China's COVID outbreak in key cities.

Apple's manufacturer Foxconn has also experienced suspension due to the worsening case of COVID in Shenzhen and Shanghai.

Tesla Price Increase in the U.S.

Tesla China is not the only country experiencing a sudden increase in prices in EV cars. The Verge reported on March 15, that Tesla has also increased their prices in the country and some models now have a 5%-10% increase in their retail price.

In the U.S., the most affordable model the EV company is selling is its Model 3 Rear-Wheel Drive which now has a starting price of an astounding $46,990.

On the other hand, the most pricey vehicle they sell is their high-end Model X Tri Motor which is now priced at $138,990. The vehicle previously had a price tag of $126,490. This means a $12,500 increase in prices.

Here is a comparison of the Tesla models with a before and after of its prices by The Verge:

• Model 3 Rear-Wheel Drive costs $44,990 and $46,990.
• Model 3 Long Range price from $51,990 to $54,490
• Model 3 Performance price from $58,990 to $61,990
• Model Y Long Range price from $59,990 to $62,990
• Model Y Performance price from $64,990 to $67,990
• Model S Dual Motor price from $94,990 to $99,990.
• Model S Tri Motor prices from $129,990 to $135,990.
• Model X Dual Motor price from $104,990 to $114,990
• Model X Tri Motor price from $126,490 to $138,990.