The Tesla Model S Long Range and Performance editions have both been cut by RMB 23,000 yuan ($3,400), bringing the starting price down to RMB 733,900 and RMB 833,900, respectively, according to information on Tesla's China website.
In July, Tesla had lowered the starting price of its Model S in China by RMB 8,000, from RMB 764,900 to RMB 756,900. Tesla also lowered the starting price of its Model X in China at that time from RMB 780,900 to RMB 772,900.
Tesla has made several price cuts in China, most recently on October 1, when it reduced the subsidized price of the Chinese-made Model 3 standard range version to RMB 249,900 and the subsidized price of the Chinese-made Model 3 long-range rear-wheel-drive version to RMB 309,900, down by RMB 21,650 yuan and RMB 34,150 yuan each.
The China-made standard range-extended Model 3 has dropped nearly RMB 80,000 in nearly a year and a half since it was first announced last May with a starting price of RMB 328,000.
Cui Dongshu, secretary-general of the China Passenger Car Association (CPCA), recently said that it is expected that Tesla's entry price will drop to RMB 250,000.
Considering that its core is a cost-effective alternative to fuel vehicles, Tesla may continue to reduce its price in the future, but at the moment, it is unlikely that the price will be reduced in the short term, he said.
He said that from the current domestic supply, there is no better and cheaper alternative to CATL lithium iron phosphate. In this case, the Tesla Model 3 will remain extremely price competitive for some time, and it is currently estimated that Tesla will not make further price adjustments, so its price will remain stable in the coming months.
Xingye Securities has previously estimated that there is room for the China-made Model 3 to drop to RMB 220,000 - RMB 230,000, corresponding to annual sales of 545,000 units.
Since its first delivery in January this year, China-made Model 3 sales have continued to lead the way. CPCA's latest figures show that Tesla sold 11,329 cars in China in September, up from 11,800 in August, ranking third in the new energy vehicle market behind SAIC-GM Wuling (24,386) and BYD (19,048).
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