American automaker Tesla recently announced plans to lower the Chinese pricing of the Model Y LR and Performance variants starting today.
The move is a huge leap from Tesla’s oath to end the intensifying price war in the world’s largest automotive market. Along with fifteen Chinese electric automakers, Tesla signed the Memorandum of Understanding (MoU) to “stabilize the market.”
Price changes
Tesla reduced the base price of the Model Y LR and Performance variant by 14,000 yuan ($1,934.58).
The Long Range variant now starts at 299,900 yuan, down by 4.5%. Meanwhile, the Performance’s starting price declined 3.8% to 349,900 yuan.
Tesla will also provide an 8,000 yuan insurance subsidy for every entry-level RWD Model 3 inventory vehicle from August 14 to September 30.
Reuters asserted Tesla Chief Elon Musk’s remark last month that the automaker may launch more price cuts even if it squeezed its margins.
See Also:
- Uber to deploy a fleet of 100 Tesla Model Ys in Japan
- Tesla launches Chinese-made Model Y in the South Korean market for about $45,000
- Tesla Gigafactory Shanghai achieves 1 million Model Y milestone
- Tesla Model Y advances to second spot in Australia’s top-selling car in June 2023
- New EV Record High for France: Tesla Model Y as Bestseller
The Musk-led automaker has offered substantial price cuts in its key markets since late 2022. It also offered discounts and incentives to empty its inventory.
However, its China-build EV sales declined 31% in July from the prior month, per China Passenger Car Association’s (CPCA) data. That said, the recent price cuts may be part of the company’s strategy to prevent sales from dropping further.
