On August 14th, Tesla made a price cut in the Chinese market by announcing price reductions for Model 3 and Model Y. This adjustment in pricing was accompanied by a time-limited subsidy initiative targeting the Tesla Model 3 vehicles currently in stock. The newly introduced subsidy amounts to 8,000 yuan (1,100 USD), aimed at enhancing the appeal of the Model 3 to potential buyers.
Specifically, the alteration in pricing involves the Model Y long-endurance version, which saw its starting price decrease from 313,900 yuan (43,200 USD) to 299,900 yuan (41,300 USD). Similarly, the Model Y high-performance version underwent an adjustment from 363,900 yuan (50,100 USD) to 349,900 yuan (48,200 USD). These price cuts signify Tesla’s strategic efforts to enhance the accessibility and attractiveness of its offerings within the Chinese electric vehicle (EV) market.
Reports indicate that between August 14th and August 30th, individuals placing orders for the Model 3 rear-wheel drive version and completing the vehicle’s delivery process are eligible to receive the 8,000 yuan (1,100 USD) subsidy. Furthermore, customers availing themselves of this subsidy must purchase car insurance through affiliated insurance agencies.
It is worth noting that Tesla has retained a previously existing preferential activity whereby inputting the recommendation code of other car owners can lead to a discount of 3,500 yuan (480 USD). These combined initiatives underscore Tesla’s commitment to creating a favorable pricing landscape for potential customers.
In the backdrop of Tesla’s pricing adjustments, it is noteworthy that the broader EV market in China has witnessed a trend of price reductions among more than ten electric vehicle brands over the past month. This competitive pricing environment has prompted consumers to speculate about the potential launch of a new Model 3 by Tesla. Consequently, the sales performance of the Model 3 experienced a notable decline within the Chinese market. This decline and a noteworthy increase in existing Model 3 vehicles contributed to a challenging sales performance for Tesla’s Shanghai plant in July, which marked a nadir for the year. These factors underpin Tesla’s strategic decision to introduce price reductions for its high-end models to stimulate demand and bolster sales.
Upon accounting for the various preferential activities and incentives, the adjusted minimum purchase prices for Tesla’s new vehicles in China stand at 220,400 yuan (30,400 USD) for the Model 3 and 260,400 yuan (35,900 USD) for the Model Y. These revised price points are aimed at increasing Tesla’s competitiveness and appeal within the dynamic and rapidly evolving Chinese electric vehicle market.
Source: Tesla
