Today, Tesla quietly announced new pricing for the Chinese market. Prices for the Model 3 and Model Y have been significantly reduced, and Tesla has finally announced prices for the high-performance Plaid editions of the Model S and Model Y.
This is Tesla’s second price cut in three months for the lower-priced model. In late October, the automaker announced price cuts of up to 9% on the Model 3 and Model Y.
The Model 3 is currently priced at RMB 229,900 ($33,415), down RMB 36,000 ($5,240) from RMB 265,900. Model Y is currently priced at RMB259,900 ($37,775), down RMB29,000 ($4,220) from RMB288,900. The Model S Plaid is 789,900 ($114,809) and the Model X Plaid is 879,900 ($127,890).
Today’s announcement comes days after the company’s latest financial report revealed that global vehicle shipments have fallen short of expectations. As for China specifically, the China Passenger Car Association (CPCA) today reported that Tesla car shipments fell by 44% to 55,796 units in November. That’s because automakers cut factory output and slashed prices amid falling demand.
According to a CPCA report, Tesla was being chased by two rivals: BYD and SAIC-GM-Wuling Automobile Co, a joint venture with China’s General Motors. BYD is 4 to 1, especially outside of Tesla, where he delivered 234,598 vehicles.
SAIC-GM-Wuling Automobile Co, which makes low-budget EVs in a joint venture with China’s General Motors, also beat Tesla by 53%, according to the association.
Still, Tesla has grown in China over the past year. According to the CPCA report, Tesla has delivered more than 50% of the vehicles produced under its Shanghai plan at the 2021 level.
Tesla’s Shanghai factory reportedly temporarily halted production in December and will operate at reduced capacity in January.
Tesla’s China division has recently seen a major management turnover. Two days ago, Reuters reported that Tesla CEO Elon Musk promoted Tom Ju to run U.S. assembly plants and sales operations in North America and Europe. This would make him his second highest executive at Tesla, behind Elon his mask. As noted by Reuters, it is unclear whether Zhu will also retain his current position and duties.
