Tesla China has launched a fresh set of cash discounts for customers of select Model Y inventory units starting Thursday, Reuters reports, citing the announcement on the Chinese social media platform Weibo.
According to the promotional materials, inventory Tesla Model Y buyers can benefit from a limited-time discount of RMB 8,000 ($1,125). However, Tesla did not indicate which particular trims are eligible for the incentives.
Customers can also only access the discounts until supplies last. Apart from the RMB 8,000 cash discount, Tesla also offers discounts on paid body paint options.
For context, the Tesla Model Y has five paint options. Two cost RMB 8,000, while the other three cost RMB 12,000. With the new discount, customers who take delivery of a Tesla Model Y on or before March 1 would only need to pay RMB 2,000 ($281).
HW 4.0 upgrade
Tesla also upgraded the entire lineup of the Model Y to include the Hardware 4.0, the company’s latest generation of hardware capable of supporting the Full Self-Driving (FSD) advanced autonomous driving function.
It will enable the electric crossover to view greater distances, with a maximum detection range of up to 424 meters. Despite the upgrade, Tesla did not raise the prices of the Model Y trims.
Tesla’s Chinese footprint
Tesla China currently only produces the Model 3 electric sedan and the Model Y electric crossover at Gigafactory Shanghai.
The Giga Shanghai serves as Tesla’s main electric vehicle export hub and biggest factory by volume. Impressively, it has an estimated production rate of more than 950,000 units per year.
In December 2023 alone, Tesla China’s sales reached 75,805 units. It enabled the company to record a 37.27% YoY growth to 603,664 units in the entire year, China Passenger Car Association’s data revealed. All these efforts are crucial for Tesla to maintain its dominant position in the battery-electric vehicle segment against BYD in the Chinese market.