Last Thursday, just after the price hike, Tesla launched a new round of price hikes
On the morning of the 14th, Tesla announced that the new rear wheel drive version of the Model 3 had a price increase of 1500 yuan, with the latest selling price of 261400 yuan. The Model Y rear wheel drive version has increased its price by 2500 yuan to 266400 yuan.
Adding to the previous price increases for the high-performance and long range versions, the mainstream models of Tesla Model 3 and Model Y have all increased in price.
Up to 14000 yuan
On November 9th, Tesla raised the price of the Model 3/Y Long Range Edition. The selling price of the Model Y All Wheel Drive Long Range Edition has been adjusted to 302400 yuan, up 2500 yuan from 299900 yuan previously. The price of the Model 3 Long Range Renewal has been adjusted to 297400 yuan, from 295900 yuan previously, with an increase of 1500 yuan.
Prior to this, Tesla had just completed the price increase for the Model Y high-performance version. On October 27th, Tesla's official Weibo account announced that the price of the domestically produced Model Y high-performance version was increased by 14000 yuan, with an adjusted price of 363900 yuan.
Regarding this, Tesla's official customer service staff has stated that the price increase is due to rising costs, and the configuration of the vehicle has not changed. "It is normal for car prices to fluctuate. If costs decrease, then prices may come down
Tesla Intends to End the 'Price War'
At the beginning of this year, Tesla significantly reduced prices in multiple countries and regions such as China, Japan, South Korea, the United States, and Europe, involving best-selling models such as the Model 3 and Model Y, becoming the main reason for the high sales growth in the first two quarters of this year.
Musk has expressed his willingness to lower the prices of electric vehicles again during turbulent times, although this will affect the company's gross profit margin, but he is willing to sacrifice gross profit margin for sales growth
Unexpectedly, after more than half a year of price war, domestic new energy vehicle companies have "fallen to the ground and emerged" in the fierce price war competition. Especially after the launch of Huawei concept cars such as Wenjie, the market share has been constantly rewritten.
At the same time, after the baptism of price war, Tesla's gross profit margin has also significantly decreased. The latest financial report shows that Tesla's total revenue in the third quarter of 2023 was 23.35 billion US dollars, a year-on-year increase of 9%; The net profit was 1.853 billion US dollars, a year-on-year decrease of 44%; The gross profit was $4.178 billion, a year-on-year decrease of 22%.
Tesla explained that the reason for the decline in net profit was due to insufficient utilization of new factories, increased operating expenses caused by the upcoming electric pickup truck Cybertruck, and expenses for artificial intelligence and other projects.
Obviously, Wall Street does not believe this reason. After the financial report was released, Tesla's stock price fell from $250 per share to around $195 per share. The stock price stabilized and rebounded only after Tesla announced a price increase.