logo
New Delhi
Home
News & Reviews
Videos
New Cars
New Bikes
Used Cars
Sell Car
Articles
Car services

Registered Office

ADDRESS
Mahindra First Choice Wheels Limited, 602, 6th Floor, Tower - B, Embassy 247, LBS Road, Vikhroli (West), Mumbai - 400083
CONTACT
+91 9606045096
EMAIL
contact@carandbike.com
© Mahindra First Choice Wheels Limited 2025. All rights reserved.
  • Latest News
  • Latest Reviews
  • Car News
  • Bike News
  • Car Reviews
  • Motorsport
  • Bike Reviews
  • Electric

Tesla Hikes Electric Car Prices In U.S.; Holds Line In China

Tesla Inc showed signs of divergent strategies in the world's two biggest automotive markets, raising prices to boost profit margins in the United States while keeping prices steady in China and hoping to grow sales there.
car&bike Team
car&bike Team
1 min read
2021-07-29 15:42:47
Follow us on
Tesla Hikes Electric Car Prices In U.S.; Holds Line In China

Tesla Inc showed signs of divergent strategies in the world's two biggest automotive markets, raising prices to boost profit margins in the United States while keeping prices steady in China and hoping to grow sales there. Tesla raised prices for the most affordable versions of Model 3 and Model Y about a dozen times this year in the United States, according to data tracked by Reuters. At the same time, Tesla recently introduced an affordable Model Y version in China, where it refrained from price hikes. Tesla posted record vehicle deliveries in the second quarter, and the price increases in North America boosted quarterly profits to a record.

But in China, the world's biggest electric vehicle (EV) market, Tesla faces competition from local rivals and problems that include product recalls, high-profile protests by consumers and pressure from regulators. Bernstein analyst Toni Sacconaghi said introduction of the lower-priced Model Y in China "may make sustained margin improvement difficult" for Tesla and raises questions about "the health of Chinese demand." A study by Bernstein analysts found Tesla owners in China were less enthusiastic and had lower repurchase intentions than owners in the United States and Europe.

Tesla raised prices for Model Y Long Range at least six times in the United States this year, bumping by $5,500 to $53,990. In China, the world's most valuable carmaker raised prices of the Model Y SUV and Model 3 sedan only once this year. The Model Y version has a price tag of 276,000 yuan ($42,394). The company also has launched promotional campaigns in China such as loan offers.

jibvapo8

Tesla raised prices for Model Y Long Range at least six times in the United States this year, bumping by $5,500 to $53,990

"I think Tesla is looking to be as competitive as it can be in China. Lower prices will be a part of that aggressive market positioning," Roth Capital Partners analyst Craig Irwin said. "There is a very large difference in battery prices in the U.S. and China, as well as local vehicle manufacturing costs."

Tesla started production at its Shanghai factory in late 2019. It has boosted sourcing of cheaper local components, including batteries from China's CATL and LG's Chinese factory. "It wasn't so long ago that the group was trimming prices in the U.S. to gain scale and maximize profitability, and it feels like we're now seeing that in China too," Hargreaves Lansdown analyst Nicholas Hyett said. The low cost of producing local EVs in China would have a lasting effect for Tesla, said Gene Munster at Loup Ventures.

"Teslas are on average 3x the cost of a typical EV made in China so they have to be priced less than the U.S. to compete," Munster said. "Prices of Teslas in China will be below (the) rest of the world for the next decade." Tesla also cut costs and boosted margins in the U.S. market by getting rid of some parts like a radar sensor and lumbar support. Tesla shares closed up 0.3% on Wednesday after falling the previous session.

m7nucnhk

China accounts for 44% of the global EV market, a much bigger share than the 17% held by the United States

CHINA MARKET SHARE SLIPS

In China, Tesla's share slipped to 11% in the battery electric vehicle market, which excludes plug-in hybrid cars, in the second quarter from 18% a year earlier, according to GLJ research. But data from Morgan Stanley showed Tesla still held a U.S. battery electric market share of nearly 70% as of February, although that was down from 81% a year earlier.

China accounts for 44% of the global EV market, a much bigger share than the 17% held by the United States.

In China, Tesla faces competition from electric vehicle makers like Nio Inc and Xpeng Inc. In the United States, Tesla's brand is stronger and its main rivals are legacy automakers like Ford and General Motors, which generate only a fraction of their sales from EVs.

GLOBAL CHIP SHORTAGE

Tesla CEO Elon Musk has reiterated that the company's mission is to make electric cars affordable and has blamed vehicle price increases on a shortage of chips and raw materials.

Tesla is coping with the chip shortage by using alternative chips and rewriting software, Musk said.

He provided a cautious outlook for chip shortage. "It does seem like it's getting better," he said on the second-quarter earnings call, but added: "it's hard to predict."

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

# Tesla# Tesla China# Tesla Electric Cars# Tesla USA# Tesla Price Hike# Auto Industry# Electric Cars# Electric Mobility
  • Overview
  • Highlight

Related News

Latest KTM Super Adventure S Evo Revealed First KTM To Get An AMT
1 min read
Latest KTM Super Adventure S Evo Revealed First KTM To Get An AMT
Driving License Driving License Driving License Driving License
0 mins read
Driving License Driving License Driving License Driving License
KTM Super Adventure S Evo Revealed First KTM To Get An AMT
2 mins read
KTM Super Adventure S Evo Revealed First KTM To Get An AMT
Toyota Crown Crossover RS Landscape Special Edition Revealed
5 mins read
Toyota Crown Crossover RS Landscape Special Edition Revealed
2021 MotoGP World Champion Fabio Quartararo To Stay With Yamaha Till 2026
1 min read
2021 MotoGP World Champion Fabio Quartararo To Stay With Yamaha Till 2026
Toyota Crown Crossover RS Landscape Special Edition Revealed
2 mins read
Toyota Crown Crossover RS Landscape Special Edition Revealed
Yamaha MT-15, Fascino & Ray ZR Get New Colours And Graphics For 2024
1 min read
Yamaha MT-15, Fascino & Ray ZR Get New Colours And Graphics For 2024
MG Hector Blackstorm Launch On April 10
1 min read
MG Hector Blackstorm Launch On April 10
BMW Group India Reports Over 51% Growth In Q1 2024 Car Sales, At 3,680 Units
1 min read
BMW Group India Reports Over 51% Growth In Q1 2024 Car Sales, At 3,680 Units

Popular Models

  • Tata Harrier EV
    Tata
    Harrier EV
    Ex-showroom Price
    ₹ 21.49 - 30.23 Lakh
  • Volkswagen Golf GTI
    Volkswagen
    Golf GTI
    Ex-showroom Price
    ₹ 50.13 Lakh
  • Kia Carens Clavis
    Kia
    Carens Clavis
    Ex-showroom Price
    ₹ 11.1 - 20.76 Lakh
  • Lamborghini Temerario
    Lamborghini
    Temerario
    Ex-showroom Price
    ₹ 6 Crore
  • Volkswagen Tiguan R-Line
    Volkswagen
    Tiguan R-Line
    Ex-showroom Price
    ₹ 45.73 Lakh
  • Mercedes-Maybach SL 680
    Mercedes-Maybach
    SL 680
    Ex-showroom Price
    ₹ 3.92 Crore
  • BYD Sealion 7
    BYD
    Sealion 7
    Ex-showroom Price
    ₹ 48.9 - 54.9 Lakh
  • Kia Syros
    Kia
    Syros
    Ex-showroom Price
    ₹ 8.69 - 16.03 Lakh
  • Hyundai Creta EV
    Hyundai
    Creta EV
    Ex-showroom Price
    ₹ 18.02 - 24.38 Lakh
  • Lotus Emeya
    Lotus
    Emeya
    Ex-showroom Price
    ₹ 2.34 Crore

Upcoming Cars

  • placeholder
    Explore Other Topics

Trending News

  • India’s New EV Policy Introduces Conditional Import Duty Reduction; Set To Benefit Tesla, Vinfast
    2 mins read
    India’s New EV Policy Introduces Conditional Import Duty Reduction; Set To Benefit Tesla, Vinfast
  • Tesla Model Y To Dethrone Toyota Corolla As World’s Best-Selling Car In 2023: Report
    1 min read
    Tesla Model Y To Dethrone Toyota Corolla As World’s Best-Selling Car In 2023: Report
  • Tesla Initiates Software Update To Fix Warning Light Issue In 2.2 Million Vehicles
    1 min read
    Tesla Initiates Software Update To Fix Warning Light Issue In 2.2 Million Vehicles
  • Tesla Recalls Nearly 2 Lakh Vehicles Over Rearview Camera Software Glitch
    1 min read
    Tesla Recalls Nearly 2 Lakh Vehicles Over Rearview Camera Software Glitch
  • BYD Overtakes Tesla As World’s Top-Selling EV Maker In Q4 2023
    1 min read
    BYD Overtakes Tesla As World’s Top-Selling EV Maker In Q4 2023

Latest News

  • NewsNews
  • Expert ReviewExpert Review
View All
  • Latest KTM Super Adventure S Evo Revealed First KTM To Get An AMT
    Jaiveer Mehra | Nov 26, 2024
    Latest KTM Super Adventure S Evo Revealed First KTM To Get An AMT
    Compared to the 1290 Super Adventure, the new 1390 packs in a larger engine, more power and more tech on board
    1 min
  • Driving License Driving License Driving License Driving License
    car&bike Team | Nov 22, 2024
    Driving License Driving License Driving License Driving License
    0 mins
  • KTM Super Adventure S Evo Revealed First KTM To Get An AMT
    Jaiveer Mehra | Oct 25, 2024
    KTM Super Adventure S Evo Revealed First KTM To Get An AMT
    Compared to the 1290 Super Adventure, the new 1390 packs in a larger engine, more power and more tech on board
    2 mins
  • Toyota Crown Crossover RS Landscape Special Edition Revealed
    car&bike Team | May 20, 2024
    Toyota Crown Crossover RS Landscape Special Edition Revealed
    Japan-specific special edition gets off-road-focused tweaks including all-terrain tyres and a raised ride height.
    5 mins
  • 2021 MotoGP World Champion Fabio Quartararo To Stay With Yamaha Till 2026
    Yashraj Singh | May 16, 2024
    2021 MotoGP World Champion Fabio Quartararo To Stay With Yamaha Till 2026
    Despite a tumultuous journey in recent seasons, Quartararo reaffirms his commitment to Yamaha, citing belief in their new approach and potential for success
    1 min
  • Toyota Crown Crossover RS Landscape Special Edition Revealed
    car&bike Team | Apr 9, 2024
    Toyota Crown Crossover RS Landscape Special Edition Revealed
    Japan-specific special edition gets off-road-focused tweaks including all-terrain tyres and a raised ride height.
    2 mins
  • Yamaha YZF R3 Real-World Review: In Pictures
    Kingshuk Dutta | Mar 29, 2024
    Yamaha YZF R3 Real-World Review: In Pictures
    The Yamaha YZF R3 is fast, looks good and is a hoot to ride as well. But the price is where all the good work comes undone. Only if there was a way for Yamaha to price it right!
    2 mins
  • Yamaha YZF R3 Real-World Review; Good Motorcycle But Too Expensive For Its Own Good
    Kingshuk Dutta | Mar 28, 2024
    Yamaha YZF R3 Real-World Review; Good Motorcycle But Too Expensive For Its Own Good
    The Yamaha YZF R3 is fast, looks good and is a hoot to ride as well. But the price is where all the good work comes undone. Only if there was a way for Yamaha to price it right!
    1 min
  • Volvo XC40 Recharge Plus Single Motor Driven: A Better Deal Than The Twin-Motor Ultimate?
    Dhruv Attri | Mar 28, 2024
    Volvo XC40 Recharge Plus Single Motor Driven: A Better Deal Than The Twin-Motor Ultimate?
    The XC40 Recharge’s single motor variant is nearly Rs 3 lakh more affordable than the AWD version. But what’s the catch?
    4 mins
  • Royal Enfield Himalayan Long Term Test: Introduction
    Kingshuk Dutta | Mar 27, 2024
    Royal Enfield Himalayan Long Term Test: Introduction
    The new Royal Enfield Himalayan now joins car&bike’s long term fleet. Over the next few months, we will tell you how the motorcycle holds up to the rigours of daily riding, highway jaunts, off-road riding and much more.
    2 mins
  • Jawa 350 vs Royal Enfield Bullet 350 Comparison Review: In Pictures
    Kingshuk Dutta | Mar 27, 2024
    Jawa 350 vs Royal Enfield Bullet 350 Comparison Review: In Pictures
    The legacy of the Royal Enfield Bullet 350 has a new challenger in the Jawa 350. But which of these modern classic 350s with iconic nameplates is a better choice for you? We try and find the answer.
    2 mins
  • Home
  • News
  • Technology
  • Tesla Hikes Electric Car Prices In U.S.; Holds Line In China