Tesla modifies the Model Y’s base price in China
In China, Tesla has increased the basic price of its Model Y crossover just one month after announcing considerable price reductions. According to the Chinese website, the electric vehicle manufacturer raised the starting price of the rear-wheel drive SUV to 261,900 yuan ($38,483.01).
Price Cuts Cause Demand to Increase
Tesla twice reduced the pricing of its models in China in January, bringing down the price of the Model Y by up to 13.5%. It appears that the plan to increase demand at the Shanghai facility was successful. Chinese customers have a high anticipation to buy an electric car this year, according to a new Wedbush study.
positive outlook for the stock of Tesla
The price reductions have been a big success, and Wedbush has predicted that Tesla’s stock would rise by 35% this year as a result. As investors’ interest in IT companies has increased in recent months, the company’s shares have already increased by 68%.
Increased Market Share
According to Reuters, Tesla’s efforts in China are having a positive impact as the company’s market share for electric vehicles grew to 12.5% in January from 9% in December. Similar price reductions in the US followed the price reductions in China, significantly boosting the spike in demand for Tesla cars.