Tesla lowers Model Y prices in China
Tesla announced that from August 14, it has reduced the prices of the long-range and performance versions of the Model Y in the Chinese market. The Texas automaker has cut the starting price of both models by 14,000 yuan ($1,934.58). Accordingly, the starting price of the Model Y Long Range fell 4.5 percent to 299,900 yuan, and the starting price of the Model Y Performance was reduced by 3.8 percent to 349,900 yuan.
In the same announcement, Tesla also stated that between August 14 and September 30, it will offer Model 3 buyers an insurance incentive of 3 yuan for entry-level, rear-wheel drive Model 8,000 vehicles.
Last month, Tesla CEO Elon Musk said that prices could fall even if costs increase.
Tesla has lowered prices several times in the US, China and other markets since last year and increased the discounts to hedge against competition and economic uncertainties. However, sales of Tesla vehicles manufactured in China in July fell 31 percent from June, the first month since December, according to data from the China Automobile Passenger Transport Association (CPCA).
Geely's Zeekr brand cut prices by as much as 37,000 yuan last week, while Zhejiang Leapmotor Technologies discounted up to 20,000 yuan earlier in the month. The price cuts that Tesla started last year increased the competition and competition in the Chinese market intensified.
“Price competition will continue to be an ongoing issue of the Chinese auto market,” said Joanna Chen, auto analyst in China.
