Tesla has officially reduced the prices of its premium Model S and Model X vehicles in China, a significant adjustment after a series of substantial discounts were extended earlier. These two models, which are not manufactured locally, have seen a notable drop in their starting prices, aiming to attract more consumers in the Chinese market.
The recently unveiled price adjustments have been applied to both the entry-level dual-motor all-wheel-drive versions as well as the more advanced tri-motor all-wheel-drive Plaid variants. The latest figures indicate a significant decrease in costs compared to previous price listings.
The starting price for the dual-motor Model S now stands at RMB 698,900 ($96,190), reflecting a substantial reduction of RMB 110,000 or 13.6 percent from its previously displayed price of RMB 808,900. Meanwhile, the tri-motor Model S Plaid now starts at RMB 828,900, representing a notable drop of RMB 200,000 or 19.44 percent from the previous listing of RMB 1,028,900.
Likewise, the dual-motor Model X sees a lowered starting price of RMB 738,900, marking a decrease of RMB 160,000 or 17.80 percent from its prior listing of RMB 898,900. The tri-motor Model X Plaid enters the market with a starting price of RMB 838,900, demonstrating a significant drop of RMB 220,000 or 20.78 percent from its earlier listing of RMB 1,058,900.
These adjustments in pricing come after Tesla's strategic decision to import the latest Model S and Model X vehicles into China, leveraging its existing factory in Shanghai, which primarily manufactures the more affordable Model 3 and Model Y vehicles. The previous price change for the Model S and Model X had occurred on May 5, when prices across all versions saw an increase of 19,000 yuan.
Notably, the period spanning May 5 to August 31 witnessed no alterations in the prices of the Model S and Model X models as displayed on Tesla's China website. However, during this interval, Tesla introduced significant discounts for both models, aiming to stimulate demand.
On July 1, Tesla announced a discount range of RMB 35,000 to RMB 45,000 for the Model S and Model X vehicles already produced in China. This discount offer was subsequently increased to a range of RMB 54,000 to RMB 70,000 on August 16, underscoring the company's determination to boost sales.
While Tesla's website maintained an appearance of price stability for the Model S and Model X during the past two weeks, actual price adjustments were made on August 16, with the dual-motor Model S priced at RMB 754,900 and the dual-motor Model X priced at RMB 836,900.
In parallel news, Tesla has introduced pre-sales of the revamped Model 3 sedan in China, albeit at a higher price point compared to the previous model. This move highlights Tesla's strategic approach to capturing different segments of the Chinese automotive market.