Within three weeks, all price increases for Tesla's "3Y" portfolio models on sale in the Chinese market have been completed. On November 14, Tesla China’s official website was updated again, raising the starting prices for the rear-wheel drive versions of Model 3 and Model Y. Among them, the refreshed version of Model 3 rear-wheel drive has been increased by 1,500 yuan, and the adjusted starting price is 261,400 yuan; the rear-wheel drive version of Model Y has been increased by 2,500 yuan, and the adjusted starting price is 266,400 yuan.
On October 27 this year, the price of the Model Y high-performance version was increased by 14,000 yuan, opening the window for this round of price increases; on November 9, the starting prices of the Model 3 long-range refreshed version and the Model Y long-range model increased by 1,500 yuan and 2,500 yuan respectively. After this round of price adjustments, all Model 3/Y models have experienced price increases.
Regarding this round of price increases, Tesla China has cited Model Y as an example. This model has just completed the evolutionary upgrade of the entire series. The interior has added multi-color ambient lights, updated technical fabric materials are used on the dashboard trim and front door trim, and the exterior has updated 19-inch Gemini wheel designs. These configurations will increase the cost of the vehicle.
Since the beginning of this year, Tesla has frequently cut prices, and the prices of Model 3 and Model Y once fell to lows. Among them, the starting price of Model 3 was as low as 229,900 yuan. In fact, Tesla, which frequently adjusts prices dynamically, has also raised prices this year. In May, Tesla announced that the price of Model 3 would rise to 231,900 yuan, the price of Model 3 high-performance version would rise to 331,900 yuan; the price of Model Y would rise to 263,900 yuan, and the price of Model Y long-range version would rise. to 313,900 yuan, and the Model Y high-performance version rose to 363,900 yuan. The price of the 3/Y models increased slightly by 2,000 yuan, but it was still lower than the 265,900 yuan and 288,900 yuan before the price reduction started at the beginning of this year. Before the refreshed version of Tesla Model 3 was launched in August this year, Tesla cut prices again. The starting price of the Model Y long-range version dropped to 299,900 yuan, and the Model Y high-performance version dropped to 349,900 yuan. Both models dropped prices by 14,000 yuan.
The double-edged sword effect brought about by price cuts is also gradually emerging. Data from the Passenger Car Market Information Joint Conference shows that in the first 10 months of this year, the cumulative delivery volume of Tesla's Shanghai Gigafactory reached 771,000 vehicles, more than the whole of last year, and is expected to set a new annual delivery record for domestic luxury car companies. Among them, Model Y has firmly ranked first in China's passenger car sales this year, and Model 3 has ranked first in the delivery of luxury brand cars. While sales are increasing steadily, Tesla's ability to make money is "alarming." The financial report shows that Tesla’s gross profit margin fell to 17.9% in the third quarter of this year. In this regard, Tesla CEO Elon Musk explained: "Due to underutilization of the new factory, expenditures on projects such as the upcoming Cybertruck pickup truck and artificial intelligence, operating expenses have increased, and its profit margins have been hit." However, in the eyes of the outside world, Tesla's decline in gross profit margin is not unrelated to its large-scale price cuts this year, and choosing to increase prices will help Tesla improve its gross profit margin.
It is worth mentioning that although the price of the refreshed Tesla Model 3, which was launched in August this year, has increased by 28,000 yuan, demand still exceeds supply. Industry insiders believe that improved configurations of new versions of models, fluctuations in power battery prices, and increased demand to stimulate sales growth have also allowed Tesla to open a window for price increases. Tesla China's official website shows that the current pick-up cycle for Model Y has been extended to 2-8 weeks, and the pick-up cycle for the refreshed Model 3 is 2-9 weeks. Analysts said that Tesla's Shanghai Gigafactory continues to supply many countries in Asia-Pacific and Europe, and the delivery cycle is likely to continue to be extended.
In addition, the vehicle purchase tax is about to be adjusted next year, which also gives Tesla hope to continue its momentum at the end of this year. In June this year, the "Announcement on Continuing and Optimizing the Vehicle Purchase Tax Reduction and Reduction Policy for New Energy Vehicles" jointly issued by multiple ministries and commissions clarified that for new energy vehicles with a purchase date between January 1, 2024 and December 31, 2025, the tax exemption shall not exceed 30,000 yuan per vehicle.
According to Tesla’s official website, you can also enjoy full purchase tax exemption when purchasing Model Y high-performance version, Model S and Model X. Starting next year, on the basis of enjoying a purchase tax exemption of 30,000 yuan for the above-mentioned models, car owners will need to pay a tax ranging from approximately 2,000 to 44,000 yuan.