Part 6/17:
In China, Tesla's sales figures may seem muted at first glance, but context reveals strength. The Model Y's higher-priced variants now constitute a larger share of sales, with the premiumization trend increasing profit margins. For example, the Model Y Long Range now costs about 9.5% more than last year's rear-wheel-drive model, with most of the additional revenue flowing directly to Tesla’s bottom line. Consequently, despite a slower volume growth, Tesla’s profitability in China continues to improve.