Tesla cuts prices of its entire China line-up
Tesla has again lowered the prices for all versions of the Model 3 and Model Y in China. The entry-level Model 3 now comes at a record low of 229,900 yuan (just under €31,900) after Tesla skimmed off 36,000 yuan.
For the Model 3, the starting price means that Tesla is now offering the vehicle at a lower price in China than it was at the launch in January 2021, when the car was available from 249,900 yuan. The higher trim Model 3 Performance is currently priced at 329,900 yuan (€45,695) in China, 20,000 yuan less than before.
The new base price for the Model Y in China is now 259,900 yuan (€36,000). That is 29,000 yuan less than before. For other model variants, the sales prices drop by up to 48,000 yuan (equivalent to approximately €6,650). The Model Y Long Range now costs 309,900 yuan in China, and the Performance model 359,900 yuan – €42,925 and €49,850, respectively.
According to a report in the CN EV Post, the expected delivery times have remained the same despite the price change. Currently, customers wait one to four weeks which seems like a dream in other markets. For Chinese customers, however, even this can be a long time; vehicles are often handed over directly after purchase from the seller’s warehouse.
Tesla had already significantly reduced the China prices for the Model 3 and Model Y in October 2022. Before the pricing round in October, the Model 3 was only available for 279,900 yuan (€38,770 at today’s exchange rate) and has thus become cheaper by 50,000 yuan (€6,925) within a few months. The basic Model Y once cost 316,900 yuan (€43,900), so it has become 57,000 yuan (€7,895) cheaper since October – and additionally, with a price of less than 300,000 yuan, it has become eligible for subsidies in China.
The background to the renewed price reduction is presumably declining demand – because after the price round in October, there were already (unusually for Tesla) some discount campaigns in China, for example, on insurance. Another indication of falling demand is that Tesla plans a more extended break during the Chinese New Year and will stop production in China from 20 to 31 January. In December, there were reports that production at Giga Shanghai had been temporarily curtailed.
Meanwhile, Tesla has priced the redesigned Model S and Model Y in China. The Model S will start there from 789,900 yuan (about €109,500) and the Model X from 879,900 yuan (about €122,000 ). Model S deliveries are scheduled to begin in the second quarter of 2023. The company currently offers two versions of the Model 3 and three versions of the Model Y in China.
With reporting by Sebastian Schaal.
cnevpost.com (price cuts), cnevpost.com (Model S)
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