Tesla has been in the process of price cuts since the beginning of 2023 in a bid to spur demand and fend off competition.
Tesla hikes the prices of some of its models in the US, China, Japan and Canada. These are some of the biggest markets for the most well-known EV maker on the planet. Tesla had been slashing the prices of its EVs since the beginning of this year. This is due to the fact that Elon Musk wanted to increase sales by compromising on profit margins in the weak economy that we find ourselves in at the moment. After numerous price cuts, it is time to raise the prices again.
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Tesla Hikes Prices in the US
For the US market, Tesla is being challenged by the legacy carmakers like Ford and Chevrolet. They are launching EVs left and right and people are getting options. With time, the starting price of these EVs is coming down which is diminishing the charm of Tesla EVs. Hence, in order to keep things interesting and competitive, Tesla announced multiple price cuts. However, now it has announced that the starting price of Model Y and Model 3 EVs will be increased by $250. The same is now seen on the Tesla website. This marks the second price hike in the US in less than two weeks.
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In China, the prices of the variants have been raised by 2,000 Yuan (approx. $290). Note that the local carmakers in China like BYD have been in the process of an EV-offensive spree offering customers more affordable options. That is what Tesla is struggling against in the Chinese market. This is critical for the brand since China is the second-largest market for the American EV giant.
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In the Canadian market, the EV giant has raised the price of the Performance Model 3 and Model Y by around $300 USD. On the other hand, the Japanese market is experiencing the entry-level Model 3 to be 37,000 Yen more expensive. This amounts to around $270. One could clearly see the rise in stiff competition from Chinese carmakers as even the largest EV maker in the world is struggling to find a strong foothold in any market. This is a great time to be an EV buyer since the options are increasing and carmakers are doing everything in their power to get more customers.