On the very second day of the second quarter of 2024, Tesla announced a rollback of the price cuts it announced earlier in 2024. To begin with, the Tesla Model Y is now $1,000 more expensive across all trim levels. It’s not just the U.S. market that is affected by these price hikes.
In China, one of Tesla’s biggest markets, the prices of the Tesla Model Y Long Range, as well as the Model Y Performance variants, have been hiked by up to 5,000 Yuan. The Model Y has also become more expensive in Europe, with the prices of the vehicle going up by roughly 2,000 euros across the continent.
Interestingly, Tesla’s decision to roll back price cuts comes at a time when most of its competitors are trying several things (price cuts included) to shore up demand for their EVs. Tesla’s chief rival in the Chinese market, BYD — a company that Elon Musk once ridiculed — has been waging a price war in the country. Other players in the country, including the likes of NIO and Xpeng, have also been on a price-cut spree, further affecting Tesla’s deliveries in these markets.
While it would be a while before the effects of Tesla’s decision to jack up the prices of some of its vehicles begin to show, that may not be the only reason for the lack of demand for Tesla’s vehicles of late. Recent reports indicate that the antics of Tesla’s eccentric CEO Elon Musk may actually be driving away potential Tesla customers — prompting them to look at the company’s rivals.
