Rush to the Hot Search! Tesla May Raise Prices Across the Board
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Rush to the Hot Search! Tesla May Raise Prices Across the Board

by Nina Abby on Jun 17, 2022

On the 16th, according to the official website of Tesla US, the prices of many Tesla models in the United States have increased. The price of the Model Y long-range version has increased from $62,990 to $65,990, an increase of $3,000; the price of the Model 3 long-range version has been raised from $54,490 to $57,990, an increase of $2,500; the Model S is up $5,000 to $104,990, and the Model S Plaid is unchanged at $135.990; the price of the Model X dual-motor all-wheel drive version has been increased by $6,000 to $120,990 from $114.990, and the price of the Model X Plaid has remained unchanged at $138.990.

The reason for the price increase may be related to the rising cost of raw materials for electric vehicles

It is understood that the last time Tesla raised its price in the U.S. market was in March this year, and the increase ranged from $1,000 to $5,000. In March of this year, the price of the Model Y long-range version was also increased by $3,000. With this increase of $3,000, the price of the Model Y long-range version has increased by $6,000 this year. Judging from the information on Tesla's official website in the United States, Tesla's current delivery in North America can take up to several months and up to a year. Taking the Model Y model as an example, its estimated delivery time is from January 2023 to April. The Model X is expected to be delivered from May to June 2023, with a delivery time of up to a year.

Regarding the reasons for the price increase, the official has not yet responded, which may be related to the increase in the cost of raw materials for electric vehicles. Tesla CEO Elon Musk previously tweeted that Tesla and SapceX are facing huge inflationary pressures in raw materials and logistics, saying that the situation in Russia and Ukraine has caused commodity prices to soar to the highest level since 2008.

Prices for Tesla models in China have not yet been adjusted

Subsequently, the topic of the price increase of Tesla’s entire series rushed to the hot search on Weibo in China. According to reports, Tesla may raise prices across the board. However, at present, judging from the information on Tesla China's official website, the price of Tesla models has not yet been adjusted. Although it is not known whether Tesla's Chinese market will increase the price this time, from the perspective of the delivery time of Tesla's Chinese market, the current delivery cycle of each version of Model Y ranges from 10 weeks to 20 weeks, and the delivery of each version of Model 3 Cycles range from 16 to 24 weeks, with lead times for the Model 3 rear-wheel-drive version being as long as 20 to 24 weeks. 

Tesla Musk has made it clear that Tesla's factories have been under-capacity for several quarters amid shortages of parts and semiconductor chips, and this is expected to continue for a year. "If consumers are ordering a car now, that may need to be prepared to wait a year." In addition, he also said that "Tesla's new factory is considering building in Canada or Mexico", which has also attracted attention.

Earlier, due to the epidemic in Shanghai, Tesla's Shanghai plant was shut down several times. Although Tesla's Shanghai plant resumed production on April 19, in the short term, Tesla also needs to go through a production ramp period, and there is a certain lag in production. According to relevant data, Tesla sold only 1,512 vehicles in April, down 94.15% year-on-year and 97.70% month-on-month. In May, Tesla's wholesale sales in China were 32,165, of which 22,340 were exported and 9,825 were retailed in China. In addition, from January to May 2022, Tesla China sold 215,851 vehicles in total.

Tesla's financial data has not been affected by the epidemic

At present, the global auto industry is suffering from the impact of the epidemic and the supply chain crisis, but Tesla's financial data has not been affected. According to Tesla’s recently released financial report data for the first quarter of 2022, Tesla’s total revenue in the first quarter was 18.756 billion US dollars (about 120.2 billion yuan), an increase of 81% year-on-year. Net profit attributable to shareholders was US$3.318 billion (approximately RMB 21.28 billion), a year-on-year increase of 658%, and the gross profit margin of automobiles was 32.9%.

Tesla Motors’ total vehicle production in the first quarter was 305,407, a 69% increase from 180,338 a year earlier; total vehicle deliveries were 310,048, a 68% increase from 184,877 a year earlier. In terms of vehicle production, Tesla has said it plans to expand its manufacturing capacity as soon as possible. Car deliveries are expected to grow at an average annual rate of 50% over the next few years, and the growth rate will depend on equipment capacity, operational efficiency, and the capacity and stability of the supply chain. However, in the context of the current supply chain shortage, Tesla will also face great challenges.

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