Tesla launched the Model Y in China just a few months ago, in January. With the popularity of the electric crossover/small SUV segment in the country, the anticipation for the Tesla Model Y to launch was very high so this early success was expected.
Tesla has been using a new vehicle introduction strategy for the Model Y where it will only be offered in markets that it is produced in. This strategy differs from Tesla’s previous one where the automaker imported vehicles from its Fremont factory in California.
Once production started at Gigafactory Shanghai and the Model Y was ready to be launched in China, Tesla ended up launching the electric SUV for less than anticipated. It came to the Chinese market with a starting price tag of 339,900 yuan ($52,000) for the Long Range Dual Motor version, while the Model Y Performance version started at 369,900 yuan ($56,600).
As mentioned above, the launch was successful and the automaker delivered over 1,600 Model Y electric SUVs in the country in January. The success rolled over into February as well with 4,630 Model Y deliveries throughout the month.
Now, Tesla has apparently decided to up the price of both Model Y versions in China overnight:
According to the EV giant’s website, the price hs increased by 8,000 CNY, about the equivalent of $1,200 USD. No information was given as to why we are seeing an increase in price but this isn’t the first Tesla vehicle that has seen a price adjustment recently.
To date, Tesla has suggested they are aiming to produce upwards of 200,000 Model Y vehicles at Gigafactory Shanghai by the end of the year. With this type of production goal for the Model Y alone, Gigafactory Shanghai could produce up to 450,000 vehicles in 2021.
Tesla Gigafactory Berlin and Tesla Gigafactory Texas are both currently under construction, but are well on their way to producing the Model Y.
The ramp-up in production at Gigafactory Shanghai has, and will continue to be, monitored closely as it will play an integral part in Tesla’s growth throughout this year.