Price increase! Tesla ModelY High Performance Edition has increased its price by 14000 yuan, industry analysis shows that profit pressure is high

Reporter: Li Xing, Editor: Sun Lei

When it was widely believed that Tesla would further lower the prices of its models, it reversed the trend and raised the selling price of the Model Y high-performance version by 14000 yuan.

On the morning of October 27th, Tesla's official Weibo account announced that the price of the domestically produced Model Y high-performance version had been increased by 14000 yuan, with an adjusted price of 363900 yuan. The price of the rear wheel drive standard version and the long range version of the ModelY remains unchanged, with a starting price of 263900 yuan and 299900 yuan, respectively.

Image source: Sina Weibo (@ Tesla)

It is worth noting that the new ModelY has just officially started delivery during the National Day holiday, and Tesla's slogan at that time was "performance configuration improvement and price unchanged". On October 1st, Tesla China announced the re evolution of the ModelY car, with improved performance and configuration but unchanged price. Compared to the old model, the new ModelY features multi-color ambient lights, a new dashboard trim panel made of high-tech textile materials, and 19 inch twin star wheels. In addition, the all-new ModelY rear wheel drive version has a 100 km/h acceleration time of 5.9 seconds, which is 1 second shorter than the old model.

For Tesla's "price adjustment" in less than a month, a reporter from Daily Economic News inquired about the situation with Tesla China. Continuing to lower prices will be a major trend, "Tesla staff only stated.

Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Conference, analyzed in an interview with reporters that Tesla's move is based on its increased profit pressure and a price adjustment, which is unlikely to be extended to other models. While Tesla is facing profit pressure, it is also under pressure to hit its annual sales target of 1.8 million vehicles, "said Cui Dongshu.

In addition, analysts have analyzed that the rising price of the high-performance version of ModelY indirectly reflects the "shortage of supply" of ModelY. Tesla continues to win enthusiastic responses from the consumer market with its constantly evolving product capabilities, "Tesla also stated to the public.

The reporter consulted Tesla's official website in China and found that the pre delivery dates for the new Model Y rear wheel drive and high-performance versions are both 2 to 6 weeks, while the pre delivery dates for the long range version are 6 to 8 weeks.

Image source: Tesla China official website

It is worth mentioning that the price of the ModelY high-performance version has recovered to the previous price before the latest round of price reductions. On the morning of August 14th, Tesla's official Weibo account announced that starting from that day, the Tesla China Model Y Long Range and High Performance Edition will be reduced by 14000 yuan in price. Among them, the starting price of the ModelY Long Range Edition has been adjusted from 313900 yuan to 299900 yuan; The high-performance version of ModelY has been adjusted from 363900 yuan to 349900 yuan.

The audience of the Model Y high-performance version is more focused on performance, and they are relatively less sensitive to price, "explained Cui Dongshu.

However, many netizens left messages on Tesla Weibo saying, "This creates the illusion that other configurations will also increase in price, causing you to place an order for delivery. It's an old routine. I won't place an order if it's an old routine.

According to data released by the China Association of Automobile Manufacturers, in September, Tesla's Shanghai Super Factory delivered approximately 74000 vehicles, of which ModelY delivered approximately 53200, ranking first in luxury brand vehicle sales for that month.

According to Tesla's official website, in the third quarter of 2023, Tesla produced a total of 430500 electric vehicles worldwide and delivered 435100 electric vehicles. Among them, the production of Model3 and ModelY is 416000 units, and the delivery volume is 419100 units.

Thanks to the excellent performance of ModelY, Tesla's automotive sales revenue increased significantly in the third quarter. Tesla's 2023 third quarter financial report shows that its automotive sales revenue increased by $797 million in the third quarter, a year-on-year increase of 4%.

Image source: Tesla Financial Report

However, due to the impact of large-scale price cuts, although Tesla maintained positive revenue growth in the third quarter of this year, its net profit and gross profit margin both showed a significant decline. According to the financial report, Tesla's revenue in the third quarter of this year was approximately $23.4 billion, a year-on-year increase of 9%, lower than Wall Street's expected $24.3 billion, the slowest growth rate in three years; The net profit was $1.853 billion, a year-on-year decrease of 44%.

In addition, Tesla's gross profit margin further declined to 17.9% in the third quarter, a decrease of 0.3 percentage points from 18.2% in the second quarter, setting a new four-year low. The main reason for Tesla's price increase this time is that it is currently under significant profit pressure and is eager to restore its gross profit margin, "Cui Dongshu analyzed.