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Tesla hikes China-made Model Y price again — by more than $2,000


A Tesla store opened in Shanghai (China) on December 4, 2021. Customers can experience the new electric vehicle.

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TeslaAfter two weeks of price rises in China for the more costly Model Y cars, China’s cheapest car was priced at 15,060 yuan ($2,372) last Thursday.

CNBC has tracked data that shows the Model Y, a standard China-made model, now sells for 316,900 yuan ($49.932) as opposed to the previous 301.840 yuan ($47.559) Tuesday. Although the price of the most expensive model has not changed since January, Tesla recently raised pricesThe performance and long-range models.

Model Y, the performance version of the vehicle has had its prices rise 7.7% in January. Long-range versions have seen an 8% increase. Due to Thursday’s price increase, the cost of the most affordable version rose by 5%.

Consecutive price increases are a result of rising inflation worldwide and an increase in Covid-19 in China that disrupts business activity.

Tesla CEO Elon Musk recently warned that “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics.”

Reuters reported Wednesday Tesla is suspending Shanghai factory operationsChina tightens coronavirus controls to curb its Covid-19 recent outbreak for two more days

CNBC asked Tesla to comment on the report and the price rises, but Tesla didn’t immediately reply.

Shanghai and Shenzhen are two major cities in China that have adopted strict Covid-19 regulations. Some factories were forced to cease production, which has increased the pressure on supply chains. It is also difficult to find critical materials, such as semiconductors.

China is becoming a more important market for Tesla. The country’s share, which was just 12% last year, has grown to 26% by 2021.

Chinese automaker BYD, Tesla and Chinese carmaker BYD lead the rapid-growing Chinese market for electric vehicles.