Tesla China first price reduction this year! The maximum drop is CNY37,000
24/10/2022, Tesla officially announced that the price of Model 3 and Model Y will be reduced. After adjustment, the starting price of the Model 3 model is CNY265,900(US$36,600); the starting price of the Model Y model is CNY288,900(US$39,800), all starting prices is after subsidies.
Specifically, the price of the Model 3 rear-wheel drive version is reduced by CNY14,000(US$1,930), the price of the Model 3 high-performance version is reduced by CNY18,000(US$2,480), and the price of the Model Y rear-wheel drive version is reduced by CNY28,000(US$3,860). The price of the Model Y long-range version is reduced by CNY37,000(US$5,100), and the price of the Model Y high-performance version is reduced by CNY20,000(US$2,750).
Tesla’s cuts partly reverse some of the price increases the company was forced to carry out earlier this year in China and the U.S. on the back of rising raw material costs.
Elon Musk, CEO of Tesla, warned in March that his electric car company is “seeing significant recent inflation pressure in raw materials & logistics.” The price cuts also come after Musk said he sees elements of a recession in China. “China is experiencing a recession of sorts” mostly in the property markets, Musk said last week.
Tesla delivered 343,000 vehicles for the quarter ended Sept. 30, missing analyst expectations. The company does not break out how many cars were delivered in China. Tesla also missed analyst expectation on revenue in the third quarter. However in September, the China Passenger Car Association reported Tesla delivered 83,135 China-made electric vehicles, a monthly record for the company. Tesla has a huge Gigafactory in the Chinese city of Shanghai which it completed upgrades on earlier this year.
Still, the price cuts come in the face of rising competition for Tesla in China from domestic firms such as Warren Buffett-backed BYD as well as upstarts Nio and Xpeng.
Other electric car makers have hiked prices this year including BYD and Xpeng, as rising raw material costs hit these companies.
The Chinese economy keeps facing challenges particularly as strict Covid-19 controls continue to weigh on retail sales. Third-quarter gross domestic product rose 3.9% from a year ago, beating expectations, but remaining below the official target of around 5.5% growth.
Post time: Nov-15-2022