Tesla announced that it has lowered the prices of the Model Y long-range and performance models in China starting from August 14.
The company reduced the starting price of both models by 14,000 yuan (approximately $1,934.58). The starting price of the Model Y Long Range has been reduced to 299,900 yuan, a decrease of 4.5%, and the starting price of the Model Y Performance is now 349,900 yuan.
In the same announcement, Tesla also stated that from August 14 to September 30, anyone purchasing the entry-level rear-wheel-drive version of the Model 3 from stock will receive an insurance subsidy of 8,000 yuan.
Last month, Tesla's CEO Elon Musk noted that although this might squeeze the automaker's profits, further price reductions were still possible. These measures could impact the company's earnings, but Tesla believes they are crucial for adapting to market conditions and maintaining sales momentum.
Since the end of last year, Tesla has repeatedly reduced prices in the U.S., China, and other markets, and has implemented discounts and other incentives to reduce inventory levels. These actions aim to address competition and the impact of global economic uncertainties on the automotive market. By lowering prices and offering discounts, Tesla hopes to stimulate consumer purchases of its vehicles, reduce backlogged inventory, and ensure the company maintains its market share and competitiveness in a fiercely competitive market.
According to data released earlier this month by the China Passenger Car Association (CPCA), Tesla's sales of cars manufactured in China fell by 31% in July compared to June, marking the first month-over-month decline since December last year. In summary, Tesla's car sales in China have experienced a decline compared to the same period last year, potentially affecting the company's sales performance in the local market.
