today lowered the prices of all two versions of the Model 3 by nearly 6 percent, and two of the three versions of the Model Y by nearly 3 percent.

(Image credit: CnEVPost)

Tesla (NASDAQ: TSLA) has lowered the prices of nearly its entire Model 3 and Model Y lineup in China, setting the stage for increased competition that was already red-hot.

The US electric vehicle (EV) maker today cut prices for all two versions of the Model 3 sedan by nearly 6 percent, and two of the three versions of the Model Y SUV by nearly 3 percent.

Tesla has a factory in Shanghai that produces the Model 3 and Model Y. The factory currently has an annual capacity of more than 950,000 vehicles, its largest in the world.

The Model 3 is offered in two versions in China -- an entry rear-wheel drive version and a dual-motor, all-wheel drive, long-range version -- which previously started at RMB 261,400 ($36,470) and RMB 297,400, respectively.

After today's price cuts, the entry-level Model 3's latest starting price is RMB 245,900, down RMB 15,500, or 5.93 percent.

The latest starting price for the Model 3 Long Range version is RMB 285,900, a cut of RMB 11,500, or 3.87 percent.

The Model Y is offered in three versions in China -- 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 -- with previous starting prices of RMB 266,400, RMB 306,400, and RMB 363, respectively.

After today's price cuts, the base Model Y's latest starting price is RMB 258,900, down RMB 7,500, or 2.82 percent.

The latest starting price for the Model Y Long Range is RMB 299,900, a decrease of RMB 6,500, or 2.12 percent.

The starting price for the Model Y Performance remains the same as before at RMB 363,900.

The Model 3 currently available in China is an updated version of the sedan codenamed Highland, which went on pre-sale on September 1, 2023. It officially went on sale on October 19, with deliveries beginning in late October.

Tesla launched the updated Model Y in China on October 1, with prices unchanged at the time but with minor updates to features. Deliveries of the updated Model Y in China began in mid-October.

Tesla has made a number of price increases in China since the end of October, though most of them have been small and look more like a way to promote customers on the sidelines to take delivery of their cars before the end of the year.

On October 27, 2023, the price of the Model Y Performance went up 4 percent in China. After that through the end of November, Tesla's price hikes were all less than 1 percent.

Tesla sold 75,805 vehicles in China in December, up 80.81 percent year-on-year and up 15.73 percent from November, according to data compiled by CnEVPost.

For the full year 2023, Tesla sold 603,664 vehicles in China, up 37.27 percent year-on-year.

Although the Model 3 received its first major update after six years on the market, it has been a limited boost to sales in China, in part due to the sheer number of competing models, giving it no significant advantage.

The Model 3 sold 15,750 units at retail in China in December, contributing 20.78 percent of Tesla's 75,805 sales in the country last month, data compiled by CnEVPost showed.

The electric sedan's sales in China were up 25.61 percent in December from 12,539 units in the same month last year, and up 0.79 percent from 15,627 units in November.

For the full year of 2023, Model 3 retail sales in China were 147,270 units, up 18.33 percent.

The Model Y remains popular in China and is one of the top-selling EVs, though it is also facing a growing number of competitors.

Model Y retail sales in China were 60,055 units in December, up 20.41 percent from 49,877 units in November, and up 104.36 percent from 29,387 units in the same month last year. The SUV contributed 79.22 percent of Tesla's December retail sales in China.

For the full year of 2023, retail sales of the Model Y in China amounted to 456,394 units, up 44.74 percent year-on-year.

Tesla also made a significant price cut on January 6, 2023, which was as high as RMB 48,000 at the time, which became a major trigger for the ensuing fierce price war in China.

($1 = RMB 7.1685)

Tesla China price changes

DateModelPrev PriceChange (RMB)Change (%)Latest Price
20240112Model 3261,400-15,500-5.93%245,900
20240112Model 3 Long Range297,400-11,500-3.87%285,900
20240112Model Y266,400-7,500-2.82%258,900
20240112Model Y Long Range306,400-6,500-2.12%299,900
20231128Model Y Long Range304,4002,0000.66%306,400
20231121Model Y Long Range302,400 2,000 0.66%304,400
20231114Model 3259,900 1,500 0.58%261,400
20231114Model Y263,900 2,500 0.95%266,400
20231109Model 3 Long Range295,900 1,500 0.51%297,400
20231109Model Y Long Range299,900 2,500 0.83%302,400
20231027Model Y Performance349,900 14,000 4.00%363,900
20231019New Model 3NewNANA259,900
20231019New Model 3 Long RangeNewNANA295,900
20230814Model Y Long Range313,900 -14,000 -4.46%299,900
20230814Model Y Performance363,900 -14,000 -3.85%349,900
20230505Model S789,900 19,000 2.41%808,900
20230505Model S Plaid1,009,900 19,000 1.88%1,028,900
20230505Model X879,900 19,000 2.16%898,900
20230505Model X Plaid1,039,900 19,000 1.83%1,058,900
20230502Model 3229,900 2,000 0.87%231,900
20230502Model 3 Performance329,900 2,000 0.61%331,900
20230502Model Y261,900 2,000 0.76%263,900
20230502Model Y Long Range311,900 2,000 0.64%313,900
20230502Model Y Performance361,900 2,000 0.55%363,900
20230217Model Y Long Range309,900 2,000 0.65%311,900
20230217Model Y Performance359,900 2,000 0.56%361,900
20230210Model Y259,900 2,000 0.77%261,900
20230106Model 3265,900 -36,000 -13.54%229,900
20230106Model 3 Performance349,900 -20,000 -5.72%329,900
20230106Model Y288,900 -29,000 -10.04%259,900
20230106Model Y Long Range357,900 -48,000 -13.41%309,900
20230106Model Y Performance397,900 -38,000 -09.55%359,900
20230106Model SNewNANA789,900
20230106Model S PlaidNewNANA1,009,900
20230106Model XNewNANA879,900
20230106Model X PlaidNewNANA1,039,900
20221024Model 3279,900 -14,000 -5.00%265,900
20221024Model 3 Performance367,900 -18,000 -4.89%349,900
20221024Model Y316,900 -28,000 -8.84%288,900
20221024Model Y Long Range394,900 -37,000 -09.37%357,900
20221024Model Y Performance417,900 -20,000 -4.79%397,900
20220617Model Y301,840 15,060 4.99%316,900
20220617Model Y Long Range375,900 19,000 5.05%394,900
20220315Model 3265,652 14,248 5.36%279,900
20220315Model 3 Performance349,900 18,000 5.14%367,900
20220315Model Y Long Range357,900 18,000 5.03%375,900
20220315Model Y Performance397,900 20,000 5.03%417,900
20220310Model 3 Performance339,900 10,000 2.94%349,900
20220310Model Y Long Range347,900 10,000 2.87%357,900
20220310Model Y Performance387,900 10,000 2.58%397,900
20211231Model 3255,652 10,000 3.91%265,652
20211231Model Y280,752 21,088 7.51%301,840
20211124Model 3250,900 4,752 1.89%255,652
20211124Model Y276,000 4,752 1.72%280,752
20211119Model 3235,900 15,000 6.36%250,900
20211027Model S Long Range859,990 30,000 3.49%889,990
20211027Model X Long Range909,990 30,000 3.30%939,990
20210911Model Y Performance377,900 10,000 2.65%387,900
20210804Model S Long Range829,990 30,000 3.61%859,990
20210804Model X Long Range879,990 30,000 3.41%909,990
20210730Model 3250,900 -15,000 -5.98%235,900
20210716Model S Long Range799,990 30,000 3.75%829,990
20210716Model X Long Range849,990 30,000 3.53%879,990
20210708Model YNANewNA276,000
20210508Model 3249,900 1,000 0.40%250,900
20210324Model Y Long Range339,900 8,000 2.35%347,900
20210324Model Y Performance369,900 8,000 2.16%377,900
20210101Model 3 PerformanceNewNANA339,900
20210101Model Y Long RangeNewNANA339,900
20210101Model Y PerformanceNewNANA369,900
20201001Model 3271,600 -21,700 -7.99%249,900
20201001Model 3 Long Range344,050 -34,150 -09.93%309,900

(Screenshots from Tesla's website on January 12, 2024.)

Automakers' NEV market share in China in 2023: BYD 35%, Tesla 7.8%, Nio 2.1%