While simultaneously announcing prices for Model S sedans and Model X sports utility vehicles that it is introducing to better hold on the high end of the world’s largest EV market, Tesla Inc. reduced prices on its Model 3 and Model Y electric vehicles in China by more than 10%.
According to information posted on the company’s website on Friday, the starting price for the locally produced Model 3 has been reduced from 265,900 yuan to 229,900 yuan ($33,465) and for the Model Y from 288,900 yuan to 259,900 yuan.
With international competitors like Porsche AG and Mercedes Benz Group AG, as well as domestic rivals like Warren Buffett-backed BYD Co. and Xpeng Inc., all pushing for sales, Tesla previously reduced pricing in China last year to increase sales.
The newly released Model S, which has an interior redesign, is priced at 789,900 yuan, while the Plaid version, which is Tesla’s fastest vehicle and accelerates from 0 to 100 kilometres per hour (62 miles per hour) in only 2.1 seconds, will be available starting at 1.01 million yuan. Price points for the Model X SUV start at 879,900 yuan, while those for the Model X Plaid begin at 1.04 million yuan. According to Tesla, deliveries might start as soon as the first half of this year.
Austin-based In China’s mass-market EV market, which includes cars that cost less than 300,000 yuan, Tesla is a major player. The business constructed a factory in Shanghai at the end of 2019 that can produce 450,000 Model 3 sedans annually, localising Model 3 production. It-started-shipping-Model-Ys-from-there-in-January-2021.
In 2022, Tesla shipped more than 710,000 vehicles from Shanghai, accounting for nearly 54% of its global sales. Deliveries, however, slowed in December as demand decreased and production was halted for equipment modifications. Tesla’s share price fell 12% on Tuesday after the company said earlier this week that global deliveries were fewer than anticipated for the third consecutive quarter.