After a difficult December, Tesla China seems more determined than ever to maintain its position in the country’s electric vehicle market. This was demonstrated recently when Tesla China implemented significant price cuts for the Model 3 and Model Y. These adjustments were so significant that the Model 3 is now the cheapest it has ever been in China.
Tesla currently manufactures the Model 3 sedan and the Model Y crossover at its primary vehicle export hub, Gigafactory Shanghai. The Model 3 is offered in two versions in China: the base rear-wheel drive version and the Dual Motor Performance. The Model Y is available in three versions: the base rear-wheel drive, the Dual Motor all-wheel drive, and the Dual Motor Performance.
As a result of the recent price cuts in China, the starting price for the entry-level rear-wheel drive Model 3 has been reduced to CNY 229,900 (approximately $33,500), a decrease of CNY 36,000 from its previous price of CNY 265,900 (approximately $38,700). This is the lowest starting price for the Model 3 in China to date, lower even than its January 2021 price of CNY 249,900 (approximately $36,400).
the starting price for the Model 3 Performance in Tesla China has been reduced to CNY 329,900 (approximately $48,100), a decrease of CNY 20,000 from the previous price of CNY 349,900 (approximately $51,000) for the top-tier electric sedan. For comparison, the Model 3 rear-wheel drive currently costs $46,990 in the United States, while the Model 3 Performance costs $62,990.
Tesla has also implemented significant price cuts for the Model Y crossover in China. The starting price for the base rear-wheel drive Model Y has been reduced to CNY 259,900 (approximately $37,800), a decrease of CNY 29,000 from the previous price of CNY 288,900 (approximately $42,100). The Model Y Long Range with dual-motor all-wheel drive now has a starting price of CNY 309,900 (approximately $45,100), a decrease of CNY 48,000 from CNY 357,900 (approximately $52,100).
The starting price for the Model Y Performance in Tesla China has been reduced to CNY 359,900 (approximately $52,400), a decrease of CNY 38,000 from CNY 397,900 (approximately $58,000). In the United States, the Model Y Dual Motor all-wheel drive is currently sold for $65,990, while the Model Y Performance is sold for $69,990. The base rear-wheel drive version of the Model Y is not currently available in the United States.