Tesla Model Y Prices Drop 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 starting prices for the Long Range and Performance versions have been lowered by RMB 14,000. Tesla had previously warned of potential price cuts during its second-quarter earnings call. This move comes after Tesla started reducing prices in China in October 2022.

FutureCar Staff Aug 13, 2023 11:15 PM PT

Electric vehicle giant Tesla Inc (TSLA) 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 approximately $1,934.

In a post on Weibo, 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 variant will now start at RMB 299,900 ($41,403), while the Performance variant 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, offering RMB 8,000 starting from Monday.

This move comes after Tesla CEO Elon Musk hinted at the possibility of further price cuts during the company's second-quarter earnings call last month. Musk stated that if market conditions remain stable, prices would also remain stable. However, if conditions become unstable, lower prices may be implemented.

Tesla initially began reducing prices on its vehicles in China in October 2022. Despite occasional price hikes, all versions of the Model Y in the country continue to be more affordable than before the initial round of price cuts.

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