Tesla China increases the price of the Model Y by 1,800 euros
This page is translated from the original post "Tesla Chine augmente de 1800 euros le prix de la Model Y" in French.
- 07/11/2023 10:04
Contrary to expectations, Tesla is choosing to reduce its sales but increase its margins in China. Beginning of analysis.
Has Tesla become convinced that the price war in China is lost? Local manufacturers are engaged in fierce competition where bankruptcies threaten, as each one fights to stay afloat in hopes of capturing market share.
In light of disappointing financial results and stock market sanctions, it appears that Tesla has decided to stop playing the price-cutting game with its cars. The American manufacturer has taken the position that its products are premium, that they will be rarer than BYD, Geely, and others, and that hard discount pricing no longer makes sense. Is this justified? The trend of history, however, leans toward lowering costs in the electric car sector.
Over the past 20 years, battery prices have fallen by 97% in the industry, yet this has not significantly affected car prices, as manufacturers are still protecting their enormous margins. It’s somewhat like Apple’s syndrome, where sales plummet due to products costing over €1000, but financial results remain stable because margins continue to increase. For how long?
Tesla has therefore decided to increase the price of its Model Y, which has updated specs in October 2023 in China — and possibly elsewhere? Was this the way to make the additional 14,000 yuan (about €1800) palatable? Once this information was digested, another clarification is necessary: in China, the Model Y costs 263,900 yuan, or roughly €34,000. This remains nearly €12,000 less than in France, where VAT is higher (20% versus 13% in China).
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