On November 9th, Red Star Capital Bureau reported that Tesla (TSLA. US)'s selling price had "slightly increased" three days after sales personnel widely predicted a price increase.
On November 9th, Tesla China announced that from now on, the price of the Model 3/Y Long Range Edition will officially increase. The selling price of the Model Y Long Range Edition has been adjusted to 302400 yuan, an increase of 2500 yuan; The price of the Model 3 Long Range Renewal has been adjusted to 297400 yuan, with an increase of 1500 yuan.
According to Tesla's official
This is Tesla's first forecast of a price increase. In the past, Tesla has denied or declined to comment on rumors of price adjustments, and then directly adjusted and executed them on its official website. This time, the official confirmed the rumors of price increases, but did not predict the extent of price adjustments or specific models.
The Red Star Capital Bureau learned that some consumers who had already paid a deposit of 1000 yuan immediately paid the final payment due to the price increase notice, and many of them booked the Model 3/Y standard range version. And these two basic models have not increased in price this time.
Some netizens pointed out that Tesla is forcing orders at the end of the year, using rumors of price increases to stimulate users who are still waiting to place orders or pick up their cars. Just increased by 1500/2500 yuan, is that all
Tesla prospective car owner Mr. Chen told the Red Star Capital Bureau that the Model Y high-performance version had previously increased its price by 14000 yuan, and sales personnel hinted that the Model Y standard range version may also increase its price by more than 10000 yuan, urging him to quickly collect the car.
Automotive blogger Sun Shaojun stated that after the news of price increases, Tesla orders nationwide have skyrocketed, with new orders reaching around 5000 units per day.
Unlike other car companies that have boosted sales at the end of the year, Tesla is operating in the opposite direction, first announcing a decline in referral rewards on November 1st, and then continuously increasing model prices.
According to official data from Tesla, the actual annual production capacity of Shanghai's super factory has expanded from 750000 vehicles/year in the second quarter to over 950000 vehicles/year in the third quarter. According to the latest production capacity standards, the Shanghai Super Factory can take off one car every thirty seconds. However, with the launch of the new versions of Model 3 and Model Y, even though the Shanghai super factory is operating at full capacity, the market still faces a shortage of supply, which is considered one of the reasons for the price increase.
According to Tesla's official website in China, the pick-up cycle for the Model Y rear wheel drive and high-performance versions has been extended to 2-8 weeks, while the long range version is 6-8 weeks; The pick-up cycle for the new version of Model 3 is 2-9 weeks, while the long range version takes 6-9 weeks. Tesla stated that based on the continuous supply of Shanghai's super factory to multiple countries in Asia Pacific and Europe, and the fact that it has already locked in multiple market annual sales laurels in advance, it is not ruled out that the delivery cycle may continue to be extended.
There are also views that Tesla's price adjustment is based on its profit pressure and market competition.
Since the beginning of this year, Tesla has continued to trade price for quantity, and multiple price reductions have led to a consecutive three quarter decline in gross profit margin, dropping to 17.9% in the third quarter, setting a new four-year low. Tesla's total revenue in the third quarter was 23.35 billion US dollars, an increase of 8.8% year-on-year; The net profit was 1.853 billion US dollars, a year-on-year decrease of 44%.
Tesla's cumulative delivery volume in the first three quarters exceeded 1.324 million vehicles, achieving 73.56% of its annual target of 1.8 million vehicles. According to data from the China Federation of Automobile Manufacturers, Tesla's wholesale sales in China reached 72000 vehicles in October, with a total delivery volume of 770000 vehicles in the first 10 months.
