In response to heightened competition, Tesla Inc. (NASDAQ:TSLA) has decided to lower the prices of both versions of the Model 3 and two out of three versions of the Model Y in China.
Tesla’s manufacturing facility in Shanghai, boasting an annual capacity of 950,000 vehicles and recognized as the world’s largest, is responsible for producing both the Model 3 and Model Y.
In the Chinese market, the Model 3 is available in two configurations: an entry-level rear-wheel-drive version and a dual-motor, all-wheel-drive, long-range version.
Following the recent price adjustments, the starting price for the entry-level Model 3 has been revised to RMB 245,900, down from the previous RMB 261,400. Similarly, the starting price for the Model 3 Long Range version has been adjusted to RMB 285,900, compared to the previous RMB 297,400.
The Model Y, offered in three trims in China, includes the base rear-wheel-drive version, the dual-motor all-wheel-drive Model Y Long Range, and the dual-motor all-wheel-drive Model Y Performance.
After the price revision, the base Model Y now starts at RMB 258,900, down from the previous RMB 266,400. The Model Y Long Range version sees a starting price of RMB 299,900, as opposed to the previous RMB 306,400. However, the starting price for the Model Y Performance remains unchanged.
The Model 3, introduced in China as an updated sedan available for pre-sale on September 1, 2023, and officially on sale on October 19, 2023, began deliveries in late October.
In a parallel timeline, the updated Model Y made its debut in China on October 1, 2023, featuring minor updates without any associated price changes. Deliveries for the updated Model Y commenced in mid-October.
Notably, Tesla implemented a 4% price increase for the Model Y Performance on October 27, 2023, with subsequent adjustments remaining below 1% through the end of November.
Despite encountering intensified competition, the updated Model 3 has struggled to make a significant impact on Tesla’s overall sales. However, the Model Y continues to maintain its popularity in the Chinese market, ranking among the best-selling electric vehicles in the country.
Featured Image: Unsplash Tesla © Fans Schweiz
Author Stephanie Bédard-Châteauneuf 
