Tesla has raised the prices of all three variants of the Model Y by RMB 5,000 in China, in contrast to the price cuts made by other EV makers in the ongoing price war.

(Image credit: CnEVPost)

Tesla (NASDAQ: TSLA) has raised the prices of its entire Model Y lineup in China, a rare case in the price war in the electric vehicle (EV) industry.

The US EV maker today raised the prices of all three variants of the Model Y in China by RMB 5,000 yuan ($690), information on its Chinese website showed.

The Model Y is offered in three versions in China, with the price of the base rear-wheel-drive version going up from the previous RMB 258,900 to RMB 263,900, an increase of 1.93 percent.

The price of the dual-motor, all-wheel-drive Model Y Long Range Edition has been raised from RMB 299,900 to RMB 304,900, an increase of 1.67 percent.

The price of the dual-motor, all-wheel-drive Model Y Performance has been raised from RMB 363,900 to RMB 368,900, an increase of 1.37 percent.

The Tesla crossover's delivery wait time in China is unchanged, with all three variants remaining at 2-6 weeks.

Tesla has a factory in Shanghai that produces the Model 3 and Model Y. Prices and wait times for the Model 3 sedan were unchanged today.

The Model 3 is offered in two versions in China -- an entry-level rear-wheel drive version and a dual-motor, all-wheel drive, long-range version -- with starting prices of RMB 245,900 and RMB 285,900, respectively.

Tesla had already indirectly teased its latest price hike 10 days ago, when local media outlet Cailian cited a Tesla China insider on March 20 as saying the company would raise prices in China on April 1, with the Model Y's price to go up by RMB 5,000.

The price hike means that the actual cost for consumers to buy the Model Y will rise by as much as RMB 23,000, considering that entitlements including insurance subsidies will expire at the end of March, the report noted.

Tesla's offers in China last month have included a RMB 8,000 insurance subsidy, discounts on paid car paint, and discounted loan rates.

Shortly after the price change on Tesla's China website, the EV maker announced on Weibo that the gray paint, which originally cost RMB 12,000, became free for the Model 3 and Model Y.

Tesla didn't mention it on Weibo, but information on its Chinese website shows that the black paint, previously free, is now a RMB 8,000 paid option for both the Model 3 and Model Y.

The first model produced at Tesla's Shanghai factory is the Model 3, with deliveries starting in January 2020. Deliveries of the locally produced Model Y start a year later in January 2021.

The Model Y is one of the best-selling models in China, with monthly sales exceeding even many traditional gasoline cars. After deliveries of the locally-produced Model Y begin, deliveries of the Model 3 drop significantly.

For the full year of 2023, the Model Y sold 456,394 units in China, contributing 75.6 percent of Tesla's full-year sales of 603,664 units in China, according to data compiled by CnEVPost.

The Model 3 sold 147,270 units in China in 2023, contributing 24.4 percent of Tesla's annual sales in China.

In the first 2 months of this year, Tesla sold 70,022 vehicles in China, with the Model Y and Model 3 contributing 52,449 and 17,573 respectively.

Tesla's move to raise prices today contrasts with price cuts by other Chinese EV makers in the ongoing price war.

BYD (HKG: 1211, OTCMKTS: BYDDY) has updated a number of its models after the Chinese New Year holiday in late February, all of which have seen significant price drops.

Other car companies including Nio (NYSE: NIO), Xpeng (NYSE: XPEV), Li Auto (NASDAQ: LI), Polestar (NASDAQ: PSNY), Neta, and IM Motors have also been competing on price in different ways so far this year.

($1 = RMB 7.2213)

Data tracker: Tesla China price changes