Tesla Inc. (NASDAQ: TSLA) has hiked the costs of the Model S car and Model X SUV long-range models in China, just days after a similar price increase in the United States.
What happened was this: The manufacturer from Palo Alto, California, has quietly changed its China website to reflect the $4,638 price rise.
The Price Increase: The Model S Long Range costs RMB 829,990 (about $118,538), while the Model X Long Range costs RMB 879,990 (approximately $125,679).
Tesla owners in the United States were hit with a price increase for both the Model S and X long-range variants earlier this month. Earlier this year, Tesla raised the price of the Plaid Model S by $10,000.
In China, the Elon Musk-led manufacturer has also begun taking reservations for its locally made and more inexpensive edition of the electric mid-size SUV Model Y.
Musk had previously blamed the price hikes on industry-wide supply chain difficulties and chip shortages.
The Model S and X are the company’s most expensive and high-end vehicles. The S and X were recently updated with a new interior and external design for a more modern style, as well as improved efficiency and range.
Also see: Tesla EV price hikes, according to Elon Musk, are due to supply chain issues.
Why Does It Matter? Tesla’s periodic price drops in the past have been met with dissatisfaction from Chinese owners, according to cnEVpost, which first reported the issue. Tesla maintains it is giving consumers a discount due to cost savings from local production.
China is critical to Tesla’s future expansion ambitions and its goal of delivering 20 million electric vehicles per year within a decade. The world’s largest automobile market already accounts for roughly 30% of Tesla’s global sales and is the company’s second-largest market after the US.
Price Changes: On Thursday, Tesla shares fell 0.43 percent to $650.60.
Also see: With Model Y driving growth, Tesla sees an 85 percent increase in California registrations.
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