Mark Kane
Tesla sharply reduced the prices for its Made-in-China (MIC) Model 3 and Model Y cars in China in an attempt to boost sales. This is the second price reduction in China within just over two months (the first one was 5-9 percent in late October), and as far as we know, the most significant one to date. Before we jump into details, let’s note that the company sold fewer cars in China in December than a year ago, had a production break in December and plans another break in January (according to Reuters), and has to deal with the end of EV subsidies in China from January 1, 2023 – 11,088 CNY ($1,635) for the most affordable BEV models. All of that is combined with increasing competition in the electric car segment and a challenging economy, which caused a fast decrease in the estimated order backlog. As of January 6, 2023 prices of all Tesla Model 3 and Tesla Model Y from the Giga Shanghai plant were lowered in China. The scale of price cuts varies depending on the version – from 5.7 percent to 13.5 percent – on the consumer level (from the previous price, after subsidies). However, on the manufacturer level (what the company gets for its cars) the drop is as high as 17 percent (from a pre-subsidy price of the Tesla Model 3 RWD). This is a very significant difference, especially considering the previous price reduction in October, and the Tesla cars in China are now more affordable than ever. Tesla Model 3/Model Y prices in China: Model 3 RWD (LFP): 229,900 CNY ($33,899) – down 47,088 CNY or 17.0%
https://insideevs.com/news/630106/tesla-model3-modely-prices-china-january2023/