Customers experience a new energy electric vehicle at a Tesla store in Shanghai, China, December 4, 2021.
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Tesla increased the price of the cheapest Model Y model in China to 15,060 yuan ($2,372) on Thursday, after two consecutive price hikes on more expensive versions in just over a week.
According to data tracked by CNBC, the Chinese-made standard Model Y is now priced at 316,900 yuan ($49,932), up from 301,840 yuan ($47,559) earlier on Tuesday. While the cheapest model remains the same price as of January, Tesla recently raised the price for performance and range versions.
Performance Model Y has seen its price increase 7.7% since January, with the long-range version up 8% in that time. The price of the cheapest version was up 5% with Thursday’s increase.
The consecutive price spikes came as rising inflation globally and a spike in the number of Covid-19 cases in China disrupted business.
Tesla CEO Elon Musk recently warned that “Tesla & SpaceX are seeing significant inflationary pressures recently on materials and logistics.”
Reuters reported on Wednesday that Tesla is suspending factory operations in Shanghai for two days, as China tightened coronavirus restrictions to contain the recent Covid-19 outbreak.
Tesla did not immediately respond to CNBC’s request for comment on the report or the price increase.
Major cities in China such as Shenzhen and Shanghai have enacted strict Covid-19 regulations, forcing some factories to halt production and putting additional pressure on strained supply chains. Important materials such as semiconductors are also in short supply.
China is an increasingly important market for Tesla. By 2021, the country’s share of Tesla’s total revenue has grown to 26% from just 12% in 2019.
Tesla and Chinese carmaker BYD dominate China’s fast-growing electric vehicle market.
