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In China, Tesla has increased the price of select Model 3 and Model Y vehicles


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Key Takeaways

  • Tesla is raising the prices of some of its refreshed Model 3 and Model Y vehicles in China.
  • The move comes after Tesla had slashed prices in China earlier this year to stimulate demand.
  • Shares of Tesla dropped more than 5% Thursday but were still 70% higher year-to-date.

Tesla (TSLA) is raising the prices of its refreshed Model 3 and Model Y long-range vehicles in China.

The world's most valuable electric vehicle maker bumped up the price tag on its Model 3 version in China by 1,500 yuan ($206) and the Model 3 Long Range's price rose by 2,500 yuan ($304).

Tesla launched the restyled, China-made Model 3 in September this year. Manufactured in Shanghai, the variant has a longer driving range and was priced 12% higher than the previous base model in China.

The move comes after Tesla slashed prices in China earlier this year on its Model Y long-range and performance versions to stimulate demand.

The US EV maker has been under pressure in China. Tesla's deliveries of China-made EVs fell 2.6% in October from a month earlier and were just 0.6% higher compared to the same period last year. Its market share shrank to 9.89% in the third quarter from 12.98% in the second quarter.

Tesla also missed third-quarter estimates for gross margin, profit, and revenue, as shutdowns at plants in Texas and China held back production.

Shares of Tesla dropped over 5% Thursday but were still 70% higher year-to-date.

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