Correction: Both the Model S and Model X lineups also have price cuts of RMB 14,000 each. A previous version of this article omitted the September 1, 2023, price cuts for both imported models.
Prices for the locally produced Model 3 and Model Y, and the imported Model S and Model X have all been cut by RMB 14,000 yuan.
(Image credit: CnEVPost)
Tesla (NASDAQ: TSLA) cut the prices of all of its models in China today, amid growing competition.
Prices for the locally produced Model 3 and Model Y, and the imported Model S and Model X have all been cut by RMB 14,000, with Model 3 and Model Y prices dropping by around 4-6 percent.
Tesla has a factory in Shanghai that produces the Model 3 and Model Y. The Model S and Model X are not produced in China and are sold here through imports.
The Model 3 is offered in two trims in China, the Model Y in three, and all of them see a price drop of RMB 14,000.
The entry-level, rear-wheel-drive Model 3's latest starting price is RMB 231,900 ($32,030), down RMB 14,000, or 5.69 percent, from the previous price of RMB 245,900, according to information on Tesla's China website monitored by CnEVPost.
The latest starting price for the dual-motor Model 3 Long Range is RMB 271,900, down RMB 14,000, or 4.9 percent, from RMB 285,900.
The entry-level rear-wheel drive Model Y has a new starting price of RMB 249,900, a decrease of RMB 14,000, or 5.31 percent, from RMB 263,900.
The Model Y Long Range has a new starting price of RMB 290,900, down RMB 14,000, or 4.59 percent, from RMB 304,900.
The Model Y Performance has a new starting price of RMB 354,900, a decrease of RMB 14,000, or 3.8 percent, from RMB 368,900.
In terms of delivery wait times, both variants of the Model 3 have gone from 2-6 weeks previously to 3-6 weeks, and all three variants of the Model Y have remained unchanged at 2-6 weeks, information monitored by CnEVPost shows.
Both the Model S and Model X are available in China in regular versions and the more expensive and powerful Plaid version.
The latest starting price for the regular Model S is RMB 684,900, down RMB 14,000, or 2 percent, from RMB 698,900.
The Model S Plaid's latest starting price is RMB 814,900, a decrease of RMB 14,000, or 1.69 percent, from RMB 828,900.
The regular Model X Plaid starts at RMB 724,900, a decrease of RMB 14,000, or 1.89 percent, from RMB 738,900.
The Model X Plaid's latest starting price is RMB 824,900, a decrease of RMB 14,000, or 1.67 percent, from RMB 838,900 previously.
On September 1, 2023, both imported models saw a reduction of about 20 percent.
The current estimated delivery dates in China for all variants of the Model S and Model X are the third quarter of 2024, and they were previously the second quarter.
Notably, Tesla recently lowered the prices of the Model Y, Model S, and Model X by $2,000 in the US, but there were no changes to the Model 3 or Cybertruck.
The EV maker delivered 386,810 vehicles globally in the first quarter, down 8.53 percent year-on-year and down 20.16 percent from the fourth quarter of 2023, according to figures it announced on April 2.
That's the first time since the second quarter of 2020 that Tesla's global deliveries have seen a year-on-year decline, and well below analysts' estimates of 449,080 vehicles.
The company sold 132,420 units in China -- its second-largest market after the US -- in the first quarter, contributing 34.23 percent of global deliveries, according to data compiled by CnEVPost. That's a 3.64 percent decrease year-on-year and a 22.08 percent decrease from the fourth quarter of 2023.
In March, Tesla sold 62,398 vehicles in China, up 107.02 percent from 30,141 in February, though down 18.61 percent from 76,663 a year earlier.
Its Shanghai plant exported 26,666 vehicles in March, down 11.77 percent from 30,224 in February while up 118.47 percent from 12,206 in the same month last year.
The first model produced at Tesla's Shanghai plant is the Model 3, with deliveries beginning in January 2020. Deliveries of the locally produced Model Y start a year later, in January 2021.
The Model Y is one of the best-selling models in China, with monthly sales exceeding even many traditional gasoline cars. And after deliveries of the locally-produced Model Y begin, deliveries of the Model 3 drop significantly.
For the full year of 2023, the Model Y sold 456,394 units in China, contributing 75.6 percent of Tesla's full-year sales of 603,664 units in China, according to data compiled by CnEVPost.
The Model 3 sold 147,270 units in China in 2023, contributing 24.4 percent of Tesla's annual sales in China.
With the rapid development of the EV industry in China over the past few years, both the Model 3 and Model Y are facing an increasing number of competitors.
Smartphone giant Xiaomi (HKG: 1810, OTCMKTS: XIACY) officially launched its first EV model, the SU7, on March 28, the latest in a slew of Model 3 rivals at a lower price.
The Model Y is still selling well in China, but the arrival of more and more competition is threatening its dominance of the crossover segment.
Nio's (NYSE: NIO) sub-brand Onvo, codenamed Alps, will launch its first model later this year.
Onvo's first model will compete directly with the Model Y, with BOM (bill of materials) costs about 10 percent cheaper, the Chinese EV maker previously said.
Tesla began a 10 percent global layoff earlier this month, and the China team has been affected.
Tesla price changes in China on Apr 21, 2024
| Model | Previous | Latest | Change % | Change in RMB |
|---|---|---|---|---|
| Model 3 | 245,900 | 231,900 | -5.69% | -14,000 |
| Model 3 Long Range | 285,900 | 271,900 | -4.90% | -14,000 |
| Model Y | 263,900 | 249,900 | -5.31% | -14,000 |
| Model Y Long Range | 304,900 | 290,900 | -4.59% | -14,000 |
| Model Y Performance | 368,900 | 354,900 | -3.80% | -14,000 |
| Model S | 698,900 | -14,000 | -2.00% | 684,900 |
| Model S Plaid | 828,900 | -14,000 | -1.69% | 814,900 |
| Model X | 738,900 | -14,000 | -1.89% | 724,900 |
| Model X Plaid | 838,900 | -14,000 | -1.67% | 824,900 |
($1 = RMB 7.2404)
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