Tesla has issued its first price adjustments of 2024 in China, lowering prices on the upgraded Model 3 and slightly refreshed Model Y. The price cuts affect the Rear-Wheel Drive (RWD) and Long Range (LR) variants of each model, and are the first price cuts by Tesla in China since August last year.
According to an update to the Design Studio in China, the Model 3 RWD has seen the biggest reduction, down ¥15,500 (C$2,900/US$2,200) to ¥245,900. The Model 3 LR saw a ¥11,500 (C$2,161/US$1,620) reduction in its price, now starting at ¥285,900. The new prices equate to about 6% and 4% reductions, respectively.
The Model 3 Performance is still not available for purchase in China after Tesla introduced the upgraded Model 3 last year.
Meanwhile, the RWD version of the Model Y also saw the larger of the two price cuts for the electric SUV. The RWD has seen its price reduced by about 3% or ¥7,500 (C$1,400/US$1,050), down to ¥258,900, and the LR now starts at ¥299,900, a ¥6,500 (C$1,220/US$915), or 2% reduction.
The Model Y Performance has seen no price cut, and still starts at ¥363,900.
As we noted at the beginning of this article, these are the first price cuts in China since August last year, when the Model Y LR and Performance were both reduced. The automaker has increased prices on its vehicles in China six different times since then, with four of those price increases coming in November alone.
This round of price cuts comes at a time when Tesla and all automakers in China are seeing decreased demand. This is also not the first move by Tesla in 2024 in an attempt to stoke demand. In early January Tesla extended an insurance subsidy promotion that was supposed to end on December 31. The extended offer was only available on the Model 3, and the subsidy was reduced from the original ¥8,000 (C$1,500/US$1,125) amount down to ¥6,000 (C$1,100/$US840). The automaker also launched new financing offers with low interest rates.
