Tesla reduces cost of high-end Model Y cars in Chinese market

author: FutureCar Staff    

Tesla has made a significant price cut on its higher-end Model Y vehicles in China, reducing the cost by 14,000 yuan ($1,900) as part of an ongoing price war. The company announced on Weibo that the Model Y Long-Range and Performance models will now be priced at 299,900 yuan and 349,900 yuan respectively.

The Model Y, along with the Model 3, is one of the best-selling vehicles for Tesla. Last year, Tesla initiated a price war in China, forcing its competitors to lower their prices as well. The Model Y Performance previously had a peak price of 417,900 yuan, while the Long-Range version was priced at 394,900 yuan. With this latest cut, Tesla has reached a new all-time low for the higher-end Model Y models in China.

In addition to the price cut, Tesla has extended an 8,000 yuan insurance subsidy for the purchase of Model 3 Rear-Wheel Drive vehicles until the end of next month. This move contrasts with a failed truce between 16 companies, including Tesla, that was organized by the China Association of Automobile Manufacturers in July.

According to Bloomberg's analysis of data from China Auto Market, the price war appears to be calming down. Tesla's deliveries in China dropped by 31% in July, marking the lowest level this year. However, the company is planning to unveil its revamped Model 3 "Highland" sedan from its Shanghai factory soon.

In July, clean car sales in China declined compared to June, although major players like BYD, Li Auto, and Nio reported new sales records.

FutureCar Staff