Tesla to raise Model Y prices in China. Here’s why?

After the price of Tesla’s performance version was increased on Oct. 27, other Model Y variants will also be adjusted, though the timing hasn’t been decided

Tesla Inc. will raise the price of its Model Y variants in China following a refresh of the car in October, making yet another tweak to pricing in the world’s biggest and most competitive electric-vehicle market.

Visitors check a Tesla Model 3 car next to a Model Y displayed at a showroom of the U.S. electric vehicle (EV) maker in Beijing, China. (REUTERS)

After the price of the performance version was increased on Oct. 27, other Model Y variants will also be adjusted, though the timing of the changes hasn’t been decided, a China-based Tesla representative told Bloomberg News.

Tesla set off a price war in China a year ago by slashing prices on its EVs as sales growth started to slow, prompting many others in the market to follow suit. More recently it has made some upward adjustments too, including last month’s 14,000 yuan ($1,920) increase for the performance Model Y variant.

The Model Y is one of China’s best-selling EVs. The updated version was rolled out on Oct. 1. New features include different ambient lighting, upgraded finishings and a new wheel design.