Tesla cuts prices in China on Model 3 and Model Y EVs to keep commanding lead in premium segment of fast-growing market

Carmaker cut prices by up to 6 per cent after reporting 15.7 per cent month-on-month sales growth to 75,805 units in mainland China in December

‘Chinese home-grown rivals have launched a raft of new intelligent electric cars to mount a challenge to the US EV builder,’ analyst says

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People look at a Tesla Model 3 at a showroom in Beijing on January 6, 2024. Photo: EPA-EFE

Published: 1:00pm, 12 Jan 2024

Tesla has cut the prices of its Shanghai-made vehicles by up to 6 per cent as it works to maintain its leading position in the premium segment of the world’s largest electric vehicle (EV) market.

The Texas-based company announced on Friday that the price of the entry-level edition of its Model 3 will be reduced from 261,400 yuan (US$36,814) to 245,900 yuan, while the starting price of the Model Y is now 258,900 yuan, down from 266,400 yuan.

The price cuts come after Tesla reported 15.7 per cent month-on-month sales growth to 75,805 units in mainland China in December, according to data released by the China Passenger Car Association.

“Tesla apparently hopes to maintain its market share in the highly competitive market,” said Phate Zhang, founder of Shanghai-based EV data provider CnEVPost. “Chinese home-grown rivals have launched a raft of new intelligent electric cars to mount a challenge to the US EV builder.”

Workers check a new Xpeng EV at the end of an assembly line in Zhaoqing, in southeast China’s Guangdong province, on October 09, 2023. Photo: Xinhua

Tesla also lowered the price of the dual-motor version of the Model 3 by 3.9 per cent to 285,900 yuan and offered a 2.1 per cent discount on the dual-motor Model Y, which now sells for 299,900 yuan.

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