Tesla made headlines today with their new China pricing: the Model 3 and Model Y had huge price cuts, and they also revealed the prices of two Plaid editions for the Model S and Model Y – both models previously unavailable in China.
Tesla has now cut prices on their lower-priced Model 3 and Model Y twice in the past three months, most recently by up to 9%.
The Model 3 has seen a price reduction of CNY 36,000 ($5,240) to CNY 229,900 ($33,415), while the Model Y has dropped by CNY 29,000 ($4,220) to CNY 259 900($37.775). The electric luxury cars – the Model S Plaid and the Model X Plaid – will cost respectively 789 900($114.809) and 879 900($127 890).
Tesla’s financial report this week showed lower-than-anticipated worldwide vehicle shipments, and today the China Passenger Car Association reported a 44% decline in Tesla’s November vehicle shipments to 55,796. The company has lowered factory output and prices due to reduced demand.
Tesla lagged behind two of its rivals in China, BYD and SAIC-GM-Wuling Automobile Co. BYD was notably more successful, delivering 234,598 vehicles — four times as many as Tesla.
SAIC-GM-Wuling Automobile Co, GM’s Chinese joint venture producing affordable EVs, outsold Tesla by 53%, according to the association.
Tesla saw impressive growth in China over the year, with a 50% increase in vehicles produced at its Shanghai plant compared to 2021 levels, according to a CPCA report.
Tesla’s Shanghai plant paused production in Dec. and is expected to run at a lower capacity in Jan.
Tesla CEO Elon Musk recently promoted Tom Zhu to become the second highest executive at the company, surpassing all but Musk himself. Zhu will now head Tesla’s US assembly plants and sales operations in North America and Europe, though it is unclear if he will retain his previous titles and duties as well.
