Will German workers' wage increase affect the price in China? Tesla Model Y will increase its price by more than 10,000 yuan again

Will German workers' wage increase affect the price in China? Tesla Model Y will increase its price by more than 10,000 yuan again

Tesla Model Y is a mid-size SUV under Tesla and one of Tesla's main models in the Chinese market. Since its launch in January 2021, Model Y has been favored by many consumers and has become Tesla's sales leader in the Chinese market.

However, recently, some netizens discovered that many Tesla salesmen posted a notice on their WeChat Moments that the price of Model Y will soon increase. It must be mentioned that the price of Model Y was increased by 14,000 yuan not long ago.

In this regard, some media asked Tesla officials for confirmation, and they confirmed that the price of the new Model Y will increase. This is another price increase after the Tesla Model Y increased by 14,000 yuan on October 27.

So, why did Tesla Model Y increase its price?

91che believes that Tesla's move is a price adjustment based on its increasing profit pressure. While facing profit pressure, Tesla is also under pressure to hit the annual sales target of 1.8 million vehicles.

In addition, Tesla's costs are also rising, including raw materials, transportation, labor, etc. Especially in Germany, Tesla's Berlin Super Factory has been built, but due to environmental issues, Tesla's investment in Germany has not been rewarded for a long time. And just one and a half years after the start of construction, Tesla was forced to give German employees a 4% salary increase due to pressure from the union, further worsening its financial situation.

On the other hand, the price increase of Tesla Model Y may affect its competitiveness in the Chinese market, causing some consumers to turn to other brands of new energy vehicles, providing more market space for domestic new energy vehicle companies and putting greater pressure on them to achieve their sales targets.

Tesla CEO Elon Musk once told overseas media that Tesla's biggest competitor is in China. He also said that the competition in the Chinese market is very fierce, and about 90% of companies have announced that they will quickly achieve electrification, and among them there must be competitors of Tesla.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.

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