Tesla Cuts Model Y Prices in China

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【Summary】Tesla has reduced the prices of some Model Y versions in China by up to $1,900. The company cut the starting prices of the Long Range and Performance versions by RMB 14,000. CEO Elon Musk had previously hinted at potential price cuts during the company's earnings call. This move comes as Tesla continues to adjust its prices in the Chinese market.

FutureCar Staff Aug 14, 2023 6:26 AM PT

Electric vehicle (EV) giant Tesla Inc has recently reduced prices for certain versions of its Model Y in China. The price cuts amount to as much as RMB 14,000 or about $1,934.

In a Weibo post, the company announced that it has lowered the starting prices for both the Model Y Long Range and Performance versions by RMB 14,000. The Long Range model will now start at RMB 299,900 ($41,403), while the Performance model will be priced at RMB 349,900 ($48,306).

Additionally, Tesla has introduced a limited-time insurance subsidy for inventory Model 3 rear-wheel drive vehicles, starting from Monday. The subsidy amounts to RMB 8,000.

During the company's second-quarter earnings call last month, CEO Elon Musk had warned that Tesla may further reduce prices on its vehicles. He stated that if market conditions remain stable, prices would also remain stable. However, if market conditions become unstable, lower prices may be implemented.

Tesla began reducing prices on its vehicles in China in October 2022. Although there have been instances of price hikes in between, all versions of the Model Y in the country are still cheaper than before the initial round of price cuts.

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