Tesla Significantly Cut Model 3 And Model Y Prices In China via insideevs.com
, and has to deal with the end of EV subsidies in China from January 1, 2023 - 11,088 CNY for the most affordable BEV models. All of that is combined with increasing competition in the electric car segment and a challenging economy, which causedAs of January 6, 2023 prices of all Tesla Model 3 and Tesla Model Y from the Giga Shanghai plant were lowered in China.
The scale of price cuts varies depending on the version - from 5.7 percent to 13.5 percent - on the consumer level . However, on the manufacturer level the drop is as high as 17 percent . This is a very significant difference, especially considering the previous price reduction in October, and the Tesla cars in China are now more affordable than ever.[including subsidies, the price cut is 36,000 CNY or 13.5%]Model Y RWD : 259,900 CNY - down 40,088 CNY or 13.4%Model Y Long Range AWD: 309,900 CNY - down 48,000 CNY or 13.4%We guess that this move will have a big impact on Tesla's results in China, but also might make the competition in the BEV segment more fierce .
Some interesting input about the price cuts comes from Grace Tao, Tesla's vice president of external affairs , explaining that the price adjustments are a result ofIn other words, cost-savings allowed Tesla to lower prices. Well, we do not doubt that Tesla is reducing costs, but we also know that the price is not a direct function of cost, but a result of supply and demand.
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