Tesla (TSLA) Raises Prices of Premium S, X Models by $2,750 in China

Tesla (TSLA) has increased the prices of its premium Model S and Model X vehicles by $2,750 in China, citing currency fluctuations. The price hike comes shortly after the automaker cut prices on these models by almost 30% in May to boost sales in the country. It is worth noting that China is a critical market for Tesla, and nearly 21% of the company’s revenue came from the country in Q4 2020. Additionally, Tesla has been facing increased competition from Chinese electric vehicle makers such as Nio and Li Auto. The price increase could help Tesla improve its profit margins in the region while also positioning itself as a premium brand. Despite concerns of oversaturation and price wars in the Chinese electric vehicle market, Tesla seems determined to continue its growth and expansion plans. The company is also gearing up to start producing its Model Y vehicles in China, which could further boost its presence in the region. In light of these recent developments, it will be interesting to see how Tesla’s strategy pays off in China and what impact it will have on the global electric vehicle market.