In China, the starting price of a Model 3 sedan has decreased to 265,900 Chinese Yuan ($38,695) from 279,900 yuan. The starting price of the Model Y sport utility vehicle has decreased from 316,900 Yuan to 288,900 Yuan ($39,939).
What are your thoughts about probable inflation rate over next few years?
— Elon Musk (@elonmusk) March 13, 2022
Elon Musk, the CEO of Tesla, tweeted in March that the company's raw material and logistics costs were rising "significantly" for both SpaceX and the electric car manufacturer. Tesla has since increased the cost of its vehicles while blaming problems with the global supply chain and inflation.
The most recent price increase comes after Musk warned that demand is "a little harder than it otherwise would be" due to a "recession of sorts" in China and Europe brought on by a softening property market and rising energy prices, respectively, during the company's third quarter earnings call last week.
"North America is in pretty good health," he continued. "Although the Fed [Federal Reserve] is raising interest rates more than they should, but I think they'll eventually realize that and bring it back down again."
Musk stated that Tesla is "extremely confident of a great Q4 [fourth quarter]" despite the difficulties and expects continued growth in its vehicle production sales and deliveries.
Tesla delivered 83,135 electric vehicles produced in its Shanghai factory, breaking previous quarterly records, but lagging behind rival BYD's close to 95,000 deliveries, according to China's Passenger Car Association.
At one point during the trading session on Monday, Tesla fell by more than 7%. To date, Tesla stock has decreased by about 48%.