Tesla is increasing the prices of its Model 3 and Model Y electric vehicles in China. Starting Thursday, the Model 3 will cost an additional 1,500 renminbi ($206) and the Model Y will cost an additional 2,500 renminbi ($304).
Both vehicles are manufactured in China.
Tesla’s decision to raise prices comes after previously reducing prices in January. After disappointing sales figures in the U.S. and China, Tesla increased the prices of the Model 3 and Model Y by $2,000 and $3,000 respectively.
This price increase also coincides with Tesla’s troubled relationship with China. China has recently banned Teslas from airports and certain cities due to concerns over the vehicles’ security features. Tesla officials have stated that all data is stored in China, but Chinese officials have expressed doubts and consider the cars to be a security risk.
Despite these challenges, Tesla’s sales in China continue to grow. It is estimated that Tesla has sold nearly 400,000 electric vehicles in China this year, which is a 62% increase compared to 2022.