The price of tesla's Model 3, a standard extension and upgrade, rose to 363,900 yuan from 355,900 yuan

- Aug 31, 2019-

Model3 standard extended upgrade (imported version) price increased from 355900 yuan to 363900 yuan.

Why should investors not worry about tesla raising its prices in China

Several analysts expect tesla to benefit from any price increases."We look positively at tesla's price increases because companies generally don't raise prices if there is a demand concern.""Said Ben Kallo, an analyst at Robert w. blaird, the investment bank.

Jeff Osborne, an analyst at Cowen, an investment bank, agrees.He doesn't think the price increase will deter many Chinese customers from buying tesla cars."There is always a core group of buyers who are less price sensitive who want to buy products and services right away," Mr Osborne said. "our view is that tesla thinks they can raise prices a little bit without affecting the elasticity of demand."

Daniel Ives, an analyst at wedbush securities, calls China "an important potential growth market" for tesla.He said the price increase was reasonable, but cautioned that it could lead to a 3 percent to 5 percent drop in tesla sales in China, depending on the size of the increase.

Questions are also being asked about tesla's future opportunities in China's electric car market.China sold 1.3m electric vehicles last year, accounting for about 60 per cent of global sales.Despite its size, there are risks in China's electric car market.