With demand, a product’s price is usually expected to go low. However, Tesla doesn’t take the usual business route. The price hike of Tesla Model Y, only after three months of its release, baffled fans.
Already ordered cars won’t be effected
The price changed from RMB 347,900 to RMB 377,900. The ones who already ordered the Tesla Model Y wouldn’t be affected, they will receive the same model.
As this model is on the market for only three months, the hike appears too much. However, the company hiked prices of its other models, Model S and Model 3 too.
The hike impacted the company shares, where there was a drop of 1.2% two days back, however, yesterday there was a 0.3% increase.
Whatever the reasons, the Tesla Model Y is going to be a hit in China. The demand for the model is high irrespective of the price hike.
Plausible reasons behind the hike
Considering their on-going projects, one currently in Shanghai and the coming manufacturing production in Berlin and Texas is huge. Additionally, the Tesla Shanghai known as Giga Shanghai has a capital of 100 Million Yuan. Tesla considers China as their main focus, as the potential market including their government’s focus on sustainable products is unbeatable.
However, pressure on the other productions is equally high, where Berlin’s Tesla is to compete within the country popular for its automobiles. Furthermore, Texas is to expand its existing branch in the U.S.
Their current success is used to better prices for Tesla cars in the future, the income from the current models adds value. The price hike on Model Y was predictable only if you considered the other operations too.
The obvious futuristic plans started way back. The company now accepts Bitcoins as payments within the U.S. The expectations are, by the end of the year buyers from other countries will be able to pay with bitcoins.
Though every Electric Vehicle manufacturer has its own way to do things, Tesla is unique. In many terms, similar to Apple, thinking about the after 5-Year plan. Their perfection is what leads to other car-manufacturers considering Tesla as a competition.
The competition within China is huge, where companies are trying to be the next Tesla. Like, Byton’s sedan car and Build Your Dreams (BYD) attempting to release E-taxi. Others have come up with concepts like a mini electric car, cost-effective electric cars with higher range, and SUV models designed