Tesla once again cut the Model 3/Y prices by up to the equivalent of $7,000 in China, according to Electrek. Furthermore, the American automaker has also reintroduced the $35,000 Model 3.
These announcements caused demand concerns for the EV giant in the world’s largest auto market.
In retrospect, Tesla’s pricing increased steadily from 2021 to 2022 until October in China. For the first time at that time, Tesla lowered the cost of its electric vehicles.
Interestingly, Tesla is now again lowering the pricing of the Giga Shanghai-made Model 3 and Model Y.
China Prices and its USD Equivalents
Below are the tables showing the adjustments in Tesla China’s prices and its USD equivalents:
Chinese Prices
| Model | Price Before | Price After | Percent Change |
| Model 3(RWD) | 265900 | 229900 | -13.54% |
| Model 3 Performance | 349900 | 329900 | -5.72% |
| Model Y(RWD) | 288900 | 259900 | -10.04% |
| Model Y LR | 357900 | 309900 | -13.41% |
| Model Y Performance | 397900 | 359900 | -9.55% |
USD Equivalents
| Model | Price Before | Price After | Percent Change |
| Model 3(RWD) | $ 38,712.41 | $ 33,471.16 | -13.54% |
| Model 3 Performance | $ 50,941.98 | $ 48,030.17 | -5.72% |
| Model Y(RWD) | $ 42,060.98 | $ 37,838.87 | -10.04% |
| Model Y LR | $ 52,106.70 | $ 45,118.37 | -13.41% |
| Model Y Performance | $ 57,930.30 | $ 52,397.88 | -9.55% |
As shown above, the Model Y Long Range cost has decreased by a staggering RMB 48,000. That amount represents a reduction of $7,000.
Furthermore, one may argue that the price reduction also reinstates Tesla’s $35,000 Model 3.
Meanwhile, the price of the Model 3 rear-wheel-drive was initially expected to start at $35,000 but now costs $47,000 in the US. It has been reduced from RMB 36,000 to RMB 229,90 0 ($33,430) in China.
Notably, these are the lowest price reduction from the automaker, even in China. It is also worth mentioning that the reduction coincides with the conclusion of Chinese tax incentives for the current calendar year.
The overall price of the vehicles has decreased by 12–24% due to this second cut in recent months.
Prices Adjustments in China
The following list includes each Tesla model’s overnight pricing adjustments in China:
| Tesla Models | Reductions |
| Model 3 Standard Range RWD | down RMB 36,000 to RMB 229,900 ($33,430) |
| Model 3 Performance | down RMB 20,000 to RMB 329,900 ($48,000) |
| Model Y Standard Range | down RMB 29,000 to RMB 259,900 ($37,830) |
| Model Y Long Range | down RMB 48,000 to RMB 309,900 ($45,110) |
| Model Y Performance | down RMB 38,000 to RMB 359,900 ($52,400) |
Furthermore, a quick turnaround schedule for Tesla early in a quarter is indicated for most models, which is between one and four weeks. It would also demonstrate that Tesla doesn’t have a large backlog of domestic orders.
“Tesla’s price cuts are backed by innumerable engineering innovations. [We are] responding to the country’s call with practical actions to promote economic development and release the potential of domestic demand.”
Grace Tao, Tesla China VP for external relations on her Weibo account
The announcement of the price cuts in China had Tesla’s stock drop more than 4% in premarket trade on January 6. Moreover, it is getting close to the $100/share price level.
