Tesla Announces New Pricing for China Market
Price Cuts on Model 3 and Model Y, High-Performance Plaid Edition Pricing Revealed
In a recent development, Tesla has quietly announced new pricing for the Chinese market. The company has drastically cut prices on its popular models, including the Model 3 and Model Y, while also revealing the pricing for the high-performance Plaid edition of the Model S and Model Y.
This is not the first time this year that Tesla has reduced prices on its lower-priced models in China. In late October, the company announced price cuts of up to 9% on the Model 3 and Model Y. The latest price reductions bring the cost of these models even closer to customers.
Model 3 Pricing Reduced by Over CNY 36,000
The Model 3 is now priced at CNY 229,900 ($33,415), down from CNY 265,900. This reduction of CNY 36,000 ($5,240) makes the Model 3 an even more attractive option for customers in China.
Model Y Pricing Cut by Over CNY 29,000
The Model Y is now priced at CNY 259,900 ($37,775), down from CNY 288,900. This reduction of CNY 29,000 ($4,220) further reduces the cost of this popular model for Chinese customers.
High-Performance Plaid Edition Pricing Revealed
Tesla has finally revealed the pricing for the high-performance Plaid edition of the Model S and Model Y. The Model S Plaid will cost CNY 789,900 ($114,809), while the Model X Plaid will cost CNY 879,900 ($127,890).
Pricing Cut Amid Reduced Demand
Tesla’s decision to reduce prices on its lower-priced models in China comes amid reduced demand for electric vehicles (EVs) in the country. The company has reportedly reduced factory output and cut prices to boost sales.
Tesla Vehicle Shipments Down 44% in November
The China Passenger Car Association (CPCA) reported that Tesla vehicle shipments dropped 44% to 55,796 in November. This decline is attributed to reduced demand for EVs in the country.
Tesla Outsold by BYD and SAIC-GM-Wuling Automobile Co.
According to the CPCA report, Tesla was outsold by two rivals: BYD and SAIC-GM-Wuling Automobile Co., a joint venture of General Motors in China. BYD notably outsold Tesla over four to one, delivering 234,598 vehicles.
Tesla Sees Growth in China Over Year
Despite reduced demand for EVs in China, Tesla saw growth in the country over the year. The CPCA report notes that Tesla delivered 50% more vehicles produced by its Shanghai plant compared to 2021 levels.
Temporary Production Pause at Shanghai Plant
The Shanghai plant had temporarily paused production in December and is reportedly set to run at a reduced output in January. This reduction in production will likely impact Tesla’s sales in China.
Leadership Shake-Up at Tesla’s China Division
Tesla’s China division recently saw a major leadership shake-up. Reuters reported that Elon Musk promoted Tom Zhu to run its U.S. assembly plants and sales operation in North America and Europe. This move makes Zhu the second-highest executive at Tesla, surpassed only by Elon Musk.
Key Takeaways
- Tesla has reduced prices on its lower-priced models in China.
- The company has revealed pricing for the high-performance Plaid edition of the Model S and Model Y.
- Reduced demand for EVs in China is attributed to the price cuts.
- Tesla’s Shanghai plant had temporarily paused production and will run at a reduced output in January.
- Elon Musk promoted Tom Zhu to run its U.S. assembly plants and sales operation in North America and Europe.
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