Tesla Raises The Model Y's Starting Price in China After Recent Price Reduction

Tesla Inc. has boosted the starting price of its Model Y crossovers in China by 0.8% to 261,900 yuan ($38,577.11) after significant price cuts at the start of the year sparked demand.

Tesla (NASDAQ:TSLA) increased the price of the Model Y with rear-wheel drive by 2,000 yuan to 261,900 yuan on Friday, according to price information posted on the company's Chinese website.

Reuters earlier reported that the U.S. manufacturer planned to increase output at its Shanghai facility over the next two months to meet demand fueled by significant price cuts on its best-selling models.

According to a Reuters calculation based on industry statistics, the company's market share in China's battery electric vehicle sector increased to 12.5% in January from 9% in December.

Tesla did not modify the prices for other Model Y and Model 3 variants.