Tesla sparks price battle with Chinese carmaker's vow to 'overthrow' Western competitors

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【Summary】Tesla has lowered the prices of its Model Y electric cars in China by 4%, in response to flagging sales and competition from local carmakers. This marks the second round of price cuts this year, with some vehicles discounted by up to 16%. Sales of Tesla's Chinese-made cars dropped by 31% in July.

FutureCar Staff Aug 14, 2023 7:39 AM PT

Tesla sparks price battle with Chinese carmaker's vow to 'overthrow' Western competitors

Tesla has initiated a new round of price reductions in China, reigniting the price war in the country's electric car market. This move comes just days after its main competitor in China made bold claims about "demolishing" Western rivals.

On Monday, Elon Musk's car company announced a price cut of approximately 4% on two versions of its popular Model Y electric car. This marks at least the second time this year that Tesla has reduced prices in China. As a result, certain vehicles have been discounted by as much as 16%.

The decision to lower prices in China comes as Tesla faces challenges such as declining sales and fierce competition from local electric car manufacturers. In July, sales of Tesla's Chinese-made cars, which are manufactured at its Shanghai factory, dropped by 31% compared to the previous month.