Battle for market share: Tesla cuts EV prices in mainland China in line with the US as sales slow
- Tesla, which recently raised the price of Model Y in China, has cut the cost of its Shanghai-made EVs by more than 5 per cent
- The US EV maker’s shares, which have plunged more than 40 per cent this year, will report its first-quarter earnings on Tuesday
Just earlier this month, Tesla had raised the price of the Model Y SUV by nearly 2 per cent, attempting to buck the trend of price cuts in China.
Tesla on Sunday reduced the price of its entry-level Model 3 from 245,900 yuan (US$33,965) to 231,900 yuan, and is now offering the Model Y from 249,900 yuan onwards, compared with 263,900 yuan previously.
The US electric-vehicle (EV) maker also slashed the prices of the higher-end Model S and Model X by more than 15 per cent and 19 per cent, respectively, in its second biggest market.
12:53
‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market
“Tesla’s Shanghai-made Model 3 and Model Y vehicles remain attractive to young motorists in China who regard the US carmaker as the global leader in EV development,” said Zhao Zhen, a sales director with Shanghai-based dealer Wan Zhuo Auto.
“Further price reductions are expected if delivery volumes fail to live up to the company’s expectations.”