Tesla cuts Model Y prices & offers Model 3 insurance subsidy in China
Austin, Texas-headquartered electric car pioneer Tesla Motors has once again slashed the prices of its Model 3 electric sedan and Model Y crossover SUV in China, potentially to provide a boost to sales amid increasing competition. Tesla announced that the prices of the Model Y Long Range AWD (all-wheel drive) and Model Y Performance versions have been reduced by around $1,929 (approx. 14,000 Chinese Yuan). Following the latest price cut, the Model Y Long Range AWD variant becomes cheaper by 4.5 per cent, while the Model Y Performance variant is now 3.8 per cent cheaper in the Chinese market than before.
Prices of the entry-level Tesla Model Y RWD (rear-wheel drive) and both RWD and Performance versions of the Model 3 electric sedan, however, left untouched. In other words, the prices of these EVs remain the same as before. The basic specs of these vehicles also remain the same as in early 2023. Market experts are surprised by how much Tesla has managed to reduce the prices considering competition in Chinese market. Tesla has been reporting strong production numbers and with price reductions, Tesla is still witnessing strong demand.
To be more specific, the Tesla Model 3 RWD (LFP) continues to be available with a price tag of $31,944 (approx. 231,900 CNY), while the Model 3 Performance and Model Y RWD (LFP) continue to come with price tag of $45,718 (approx. 331,900 CNY) and $36,352 (263,900 CNY), respectively, as the company made no change to the prices of these vehicles.
The Model Y Long Range AWD is now cheaper, available with a price tag of $41,310 (approx. 299,900 CNY), down 14,000 CNY or 4.5 per cent than earlier. At $48,198 (349,900 CNY), the Model Y Performance’s price is down by 14,000 CNY or 3.8 per cent.
While the prices for the Tesla Model 3 electric sedan still remain the same, there is good news for the buyers of this battery-powered vehicle also. The American EV giant has announced that the Model 3 RWD variant will be offered with a time-limited insurance subsidy. It is worth noting here that this subsidy will be available only on cars from the existing inventory (cars already produced, but not up till now ordered by anybody). Ordering an existing Tesla Model 3 RWD between 14th of August and 30th of September will result in an insurance subsidy of 8,000 Chinese Yuan (approx. $1,102).
The aforementioned price cuts have obviously been announced to provide a boost to Tesla EV sales in China. As per available information, the overall wholesale vehicle shipments (including local retail sales and exports) of Made-in-China Model 3/Model Y EVs amounted to 64,285 units in July. That represents 128 per cent year-over-year increase, but also the lowest monthly sales result thus far in 2023.