On Monday, Tesla was rumoured to be planning two prices increases for its vehicles in China. The first price increase was set for today, which it has followed through on, and another could come in December. The price increase today comes on the back of the devaluation of the Chinese yuan.
The starting price for the Model 3 is now 439,900 yuan ($61,498), up from 429,900 ($60,100). The more expensive Model X SUV is now priced at 809,900 ($113,224), up from 790,900 ($110,567). Sources in the know said earlier this week that the company was considering a further price hike due to expected Chinese tariffs. The next price increase may be dampened after it was announced today that China is going to exempt Tesla cars from purchase tax, making it more affordable for customers.
Making its cars attractive in China is important for Tesla as the country is the world’s biggest market for electric vehicles. The firm is currently building Gigafactory 3 in Shanghai which is expected to produce at least 3,000 Model 3 vehicles every week. This will allow the firm to avoid the costs involved in exporting to China, making it more competitive.
The consultancy firm, LMC Automotive, guessed the number of vehicles sold by Tesla this year as the latter doesn’t disclose the figure itself. LMC Automotive estimated that 23,678 Tesla vehicles had been sold in the first seven months of the year which is nearly double the amount sold in the entirety of the previous year.