Tesla has lowered prices on two variants of the Model Y in China on Monday, and while the automaker didn’t lower prices on the Model 3, they did introduce a new insurance subsidy.
According to a post on Tesla’s official Weibo account, the Long Range and Performance variants have each seen their prices dropped by ¥14,000 (C$2,600). In the case of the Long Range, it now starts at ¥299,900 (C$56,000), a drop of about 4.5%, while the Performance now starts at ¥349,900 (C$65,300), a drop of nearly 4%.
The price drops come just over a month after Tesla and 15 other automakers signed a pact the sought to moderate price fluctuations and foster fair competition in China. One of the pledges in the agreement was to “not disrupt the fair competition order of the market with abnormal prices,” but that part of the agreement was later rescinded over concerns of price fixing.
In the same announcement of the price drops, Tesla also launched a new insurance subsidy. Anyone who purchases a Mdoel 3 Rear-Wheel Drive (RWD) between August 14 and September 30, 2023 will receive an insurance subsidy worth ¥8,000 (C$1,500).
Based on rumours shared online on Sunday it looked like Tesla was preparing to announce something in China on Monday, and with reports of Project Highland production starting at Giga Shanghai recently, many were hoping that announcement was going to be the unveiling of the new Model 3, but instead it looks like it was these price cuts and new subsidy.