Today, Tesla applied noticeable price cuts to all versions of the Model 3 and Model Y electric cars in China, which suggests weakening demand.
According to the manufacturer's website, the prices changed by about 5-9%, depending on the version, compared to the previous prices.
In the case of the Model 3, the entry-level RWD version and Performance version are both around 5% less expensive than before.
The entry-level Model Y is almost 9% less expensive, due to a price cut of over 5%, which allowed to bring the price down below 300,000 CNY, which made the version eligible for local subsidies (worth an additional 4% off). As a result, the final effective cost is almost 9% lower than before.
The Model Y RWD also received a no-cost Silver paint option, which in the case of all other Made-in-China (MIC) cars, would cost 8,000 CNY (black is the default no-cost in China).
In addition to lowering the price of the entry-level Model Y, Tesla is also offering the silver paint, which previously cost RMB 8,000, for free in addition to the black paint. All Model 3 and other versions of the Model Y are currently only available in black paint for free.
The Tesla Model Y Long Range AWD is 9% less expensive, while the Model Y Performance's cost is almost 5% lower than before.
Tesla Model 3/Model Y prices in China:
- Tesla Model 3 RWD (LFP): *265,900 CNY ($36,610) - down 14,000 CNY or 5.0%
(from 279,900 CNY)
- Tesla Model 3 Performance: 349,900 CNY ($48,175) - down 18,000 CNY or 4.9%
(from 367,900 CNY)
- Tesla Model Y RWD (LFP): *288,900 CNY ($39,776) - down 28,000 CNY or 8.8%
(from 316,900 CNY)
Actually, the change is 16,912 CNY (5.3%) plus 11,088 CNY subsidy on top of it.
- Tesla Model Y Long Range AWD: 357,900 CNY ($49,277) - down 37,000 CNY or 9.4%
(from 394,900 CNY)
- Tesla Model Y Performance: 397,900 CNY ($54,784) - down 20,000 CNY or 4.8%
(from 417,900 CNY)
* including 11,088 CNY ($1,526) subsidy
This move is the first price reduction in China in 2022, a sign that the company has to strengthen its competitive position to increase demand and the number of orders. Especially since the Tesla Giga Shanghai plant is upgraded and ready to produce more cars than ever.
Another sign that something interesting is happening right now is additional incentives for customers in China. The company already announced insurance subsidies (up to 7,000 CNY), no down payment for leases, and promotion loan rates, according to CnEVPost.
The latest move is the big return of the referral program in China after it was shut down in September 2021. Existing Tesla owners and new customers can both earn rewards (”Treasure Chest” Points Rewards) or win prizes of various types (gadgets/items, Supercharging credits, home charging units, 24-month access to FSD, visiting the Shanghai plant, or even an entry-level Model 3/Model Y for one year use).
Some local media (Huxiu via CnEVPost) reports that the average number of visitors to Tesla stores has recently dropped, which also would support the thesis about weakened demand.
Tesla offer in China - October 24, 2022
Tesla Model 3
MIC Tesla Model 3 RWD (LFP):
- Price: *265,900 CNY ($36,610)
* 276,988 CNY ($38,137) minus 11,088 CNY ($1,526) subsidy
- Range (CLTC): 556 km (346 miles) vs 468 km (291 miles) NEDC previously
- 0-100 km/h (62 mph) in 6.1 seconds
- top speed of 225 km/h (140 mph)
MIC Tesla Model 3 Performance:
- Price: 349,900 CNY ($48,175)
- Range (CLTC): 675 km (420 miles) vs 605 km (376 miles) NEDC previously
- 0-100 km/h (62 mph) in 3.3 seconds
- top speed of 261 km/h (162 mph)
Tesla Model Y
MIC Tesla Model Y RWD (LFP):
- Price: *288,900 CNY ($39,776)
* 299,988 CNY ($41,303) minus 11,088 CNY ($1,526) subsidy
- Range (CLTC): 545 km (339 miles) vs 525 km (326 miles) NEDC previously
- 0-100 km/h (62 mph): 6.9 seconds vs 5.6 seconds previously
- top speed of 217 km/h (135 mph)
MIC Tesla Model Y Long Range AWD:
- Price: 357,900 CNY ($49,277)
- Range (CLTC): 660 km (410 miles) vs 640 km (398 miles) NEDC previously
- 0-100 km/h (62 mph): 5.0 seconds
- top speed of 217 km/h (135 mph)
MIC Tesla Model Y Performance:
- Price: 397,900 CNY ($54,784)
- Range (CLTC): 615 km (382 miles) vs 566 km (352 miles) NEDC previously
- 0-100 km/h (62 mph): 3.7 seconds
- top speed of 250 km/h (155 mph)
Sources: Tesla (referral), Reuters, CnEVPost, CnEVPost (referral)