Tesla slashes Model 3 and Model Y prices in China for second time in three months
Earlier today, Tesla quietly announced new pricing for the Chinese market. The Model 3 and Model Y have seen their prices drop significantly, and Tesla has finally revealed the price of the high-performance Plaid edition of the Model S and Model Y, which were not previously sold in the market.
This is Tesla’s second price cut for the cheapest models in three months. At the end of October, the automaker announced price cuts of up to 9% on the Model 3 and Model Y.
The Model 3 is now priced at CNY229,900 ($33,415), down from CNY265,900, a reduction of CNY36,000 ($5,240). The Model Y is now priced at CNY259,900 ($37,775), down from CNY288,900, a reduction of CNY29,000 ($4,220). The Model S Plaid will cost 789,900 ($114,809) and the Model X Plaid will cost 879,900 ($127,890).
Today’s announcement came days after the company’s latest financial report showed fewer vehicle shipments worldwide than expected. Specifically for China, earlier today the China Passenger Car Association (CPCA) reported that shipments of Tesla vehicles fell 44% to 55,796 in November as the automaker cut factory production. and reduced prices amid falling demand.
The CPCA report shows Tesla was apart of two rivals: BYD and SAIC-GM-Wuling Automobile Co, General Motors’ joint venture in China. BYD notably outside Tesla out of four to one, delivering 234,598 vehicles.
SAIC-GM-Wuling Automobile Co, the General Motors joint venture in China making budget electric vehicles, also outperformed Tesla by 53%, according to the association.
Still, Tesla has seen growth in China over the year. The CPCA report notes that Tesla delivered 50% more vehicles produced by its Shanghai plan than 2021 levels.
Tesla’s Shanghai factory temporarily halted production in December and is expected to operate at reduced output in January.
Tesla’s China division recently underwent a major management shake-up. Reuters reported two days ago that Tesla CEO Elon Musk had promoted Tom Zhu to lead its U.S. assembly plants and sales operations in North America and Europe. That makes him Tesla’s second-highest executive, surpassed only by Elon Musk. It is unclear whether Zhu will also retain his current titles and duties, as Reuters notes.