Tesla has slashed starting prices for its Model 3 and Model Y cars by 9% in China, which is one of the world’s largest electric vehicle markets besides North America and Europe.
According to a listing on Tesla China’s website on Monday, the price of the Model 3 electric sedan was lowered to 265,900 yuan ($36,727.03) from the previous 279,900 yuan. Meanwhile the price of the Model Y fell to 288,900 yuan from 316,900 yuan.
According to Tesla, it is adjusting prices according to costs, the company told Reuters in a statement.
The company had previously upgraded the Shanghai Giga, thereby increasing the production capacity of the Model 3 and Model Y. On the other hand, supply chain problems that were previously a problem have now become more stable, leading to lower costs.
Earlier in the year, the company raised the price of their electric vehicles due to rising raw material prices. The price cuts are Tesla’s first in China in 2022. Tesla itself is offering insurance incentives to buyers starting in September to encourage purchases.
Giga shanghai alone has increased its electric vehicle production to a total of 22,000 Model 3s and Model Ys per week.
