Tesla’s China price cuts squeeze used-car dealers, but interest in second-hand Model 3s and Model Ys rises
- Some dealers have had to offer markdowns of up to 40,000 yuan (US$5,971) on second-hand Model 3s
- Number of queries about the availability of used Teslas jumped last week, Shanghai second-hand car dealer says
“Dealers who bought pre-owned Tesla vehicles before January 6 have fallen victim to the massive discounts on the new cars,” said Steve Shi, a manager with Juchen Auto Trade, an automobile services firm. “The huge price drop on new cars has forced them to slash prices [of used cars] to find buyers.”
Tesla implemented an across-the-board price cut on its made-in-China cars on January 6, its second price cut in 10 weeks, to attract customers in a weakening market for premium EVs. The price of the entry-level Model 3 was slashed by 36,000 yuan, or 13.5 per cent, to 229,900 yuan, while the price of the Model Y’s basic edition declined by 29,000 yuan, or 10 per cent, to 259,900 yuan. These discounts followed a previous round of price reductions of up to 9.4 per cent introduced on October 24 last year.
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Tesla owners in China protest against price cuts as consumers tighten budgets
The price cuts came after middle-class mainland consumers became worried about job prospects and wages in a pandemic-ravaged economy in late 2022 and started drifting towards cheaper car models.