In response to heightened competition, Tesla Inc. (NASDAQ:TSLA) has implemented price reductions for both versions of Model 3 and two out of three versions of Model Y in the Chinese market.
With its state-of-the-art factory in Shanghai boasting an annual capacity of 950,000 vehicles, making it the largest in the world, Tesla produces both Model 3 and Model Y at this facility.
In China, the Model 3 is available in two trims: an entry-level rear-wheel-drive version and a dual-motor, all-wheel-drive, long-range version. Following the recent price adjustments, the starting price for the entry-level Model 3 has been reduced to RMB 245,900, down from the previous RMB 261,400. Similarly, the starting price for the Model 3 Long Range version is now RMB 285,900, down from the earlier RMB 297,400.
The Model Y lineup in China comprises three trims: the base rear-wheel-drive version, the dual-motor all-wheel-drive Model Y Long Range, and the dual-motor all-wheel-drive Model Y Performance. Following the price revisions, the base Model Y now starts at RMB 258,900, reduced from the prior RMB 266,400. The Model Y Long Range starts at RMB 299,900, down from the previous RMB 306,400, while the starting price for the Model Y Performance remains unchanged.
The Model 3, introduced in China as an updated sedan on September 1, 2023, and available for sale since October 19, 2023, has faced tough competition, and despite efforts, it has not significantly impacted the company’s overall sales.
In comparison, the updated Model Y, launched on October 1, 2023, with minor enhancements and no price adjustments, has maintained its popularity in the face of rising competition. Tesla had a modest 4% price increase for the Model Y Performance on October 27, 2023, with subsequent price hikes staying below 1% until the end of November.
While the updated Model 3 grapples with competition, the Model Y continues to thrive and remains among the best-selling electric vehicles in China despite the challenges presented by the increasingly competitive market.
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