Tesla cuts Model Y prices for the first time in 7 months as Chinese rivals Li Auto, Xpeng and Nio post rapid sales growth

Tesla has cut prices of the Long Range and Performance versions of the Model Y SUV by 4 per cent each

The move follows cuts by EV makers, including Zeekr and Leapmotor, who have slashed prices of some models by as much as 10 per cent

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Tesla has cut the price of the Model Y SUV in China by 4 per cent. Photo: AFP

Published: 4:00pm, 14 Aug 2023Updated: 4:01pm, 14 Aug 2023

Tesla has cut prices of its Shanghai-made Model Y vehicles by 4 per cent, its first reduction in seven months, as the US carmaker seeks to keep its Chinese electric-vehicle rivals at bay.

The price of the sport-utility vehicle’s Long Range model was dropped to 299,900 yuan (US$41,320), from 313,900 yuan, while the Performance version was cut to 349,900 yuan, from 363,900 yuan, the company said on Monday. The basic edition of Tesla’s bestselling model in China was unchanged at 263,900 yuan.

The prices of the Long Range and Performance editions of Model Y are now at their lowest in China since Tesla began assembling the SUV at the Gigafactory at the start of 2021.

“Tesla remains the leader in the premium electric vehicle (EV) segment in China, but it is facing heightened competition from local rivals,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “It wants to make its bestselling Model Y more attractive to Chinese buyers to retain its market share.”

Malaysian Prime Minister Anwar Ibrahim speaks during the launch of Tesla’s Model Y SUVs in Kuala Lumpur, Malaysia, on July 20, 2023.Photo: Bloomberg

Chinese EV start-ups Li Auto, Nio and Xpeng, which are viewed as China’s best response to Tesla, reported lofty monthly sales in July, buoyed by the release of pent-up demand in the world’s largest market for EVs.