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Tesla slashes prices for Model Y versions in China
The renowned electric car manufacturer implemented a reduction of 14,000 yuan ($1,934.58) on the initial prices for both Model Y variants.
Beijing: Tesla Inc. (TSLA.O) on Monday initiated price reductions in China for its long-range and performance versions of the Model Y, effective from August 14, as stated in an official communication on Monday.
The renowned electric car manufacturer implemented a reduction of 14,000 yuan ($1,934.58) on the initial prices for both Model Y variants. The Model Y Long Range now commences at 299,900 yuan, signifying a decrease of 4.5%, while the Model Y Performance variant is now available at a starting price of 349,900 yuan, reflecting a 3.8% reduction.
Simultaneously, Tesla unveiled its plan to provide insurance subsidies of 8,000 yuan for prospective buyers of the entry-level, rear-wheel-drive versions of the Model 3 inventory vehicle in China. This offering will be accessible from August 14 through September 30.
Following this announcement, the company's shares experienced a decline of nearly 2% in U.S. premarket trading.
Tesla's CEO, Elon Musk, had recently indicated the possibility of further price adjustments, despite potential implications on the company's profit margins.
Over the past year, Tesla has repeatedly adjusted prices in markets such as the United States and China, utilizing discounts and other incentives to manage inventory levels and navigate the competitive landscape and economic uncertainties.
The sales of Tesla's vehicles manufactured in China faced a setback in July, reporting a 31% decline compared to the previous month, as disclosed by the China Passenger Car Association (CPCA) earlier this month. This marked the first month-on-month sales decline since December.