On September 16, Tesla’s official website in China showed that the shortest expected delivery time of all models of the company’s Model 3 and Model Y has been shortened to one week.
The Model 3 includes a rear-wheel-drive version and a performance version. The rear-wheel-drive version of the Model 3 is expected to be delivered in 1-8 weeks, with a price tag starting from 279,900 yuan ($39,927). The performance version of the Model 3 is expected to be delivered in 1-10 weeks, with a price tag starting from 367,900 yuan.
Tesla Model Y includes three models: rear-wheel-drive, long-range and performance. The rear-wheel-drive version of the Model Y with a starting price of 316,900 yuan is expected to be delivered within 1-4 weeks. The long-range version and performance version of the Model Y are expected to be delivered within 1-10 weeks, with a starting price of 394,900 yuan and 417,900 yuan respectively.
In addition, according to a report by The Paper on September 16, Tesla owners in China who pick up their cars between September 16 and September 30 can enjoy an insurance subsidy of 8,000 yuan if they choose to buy insurance in Tesla’s stores, which can be directly used to reduce the price of their purchase. The campaign targets all new Tesla Model 3 and Model Y vehicles made in China.
Several Tesla salespersons said that some of the Model 3 and Model Y models are currently available for sale, but the new, hidden price reduction has triggered some dissatisfaction from previous customers. Others believe that Tesla’s insurance subsidy activity is just a transitional behavior and the official price may be lowered in the future.
With the upgrade of its production line in its Shanghai factory in July, the company’s annual production capacity of the factory has reached 750,000 vehicles. Therefore, the delivery cycle of Tesla Model 3 and Model Y models in the Chinese market has been greatly shortened. Many industry insiders predict that Tesla China will see a long-awaited price cut around October.
Tesla’s EV sales reached 76,965 units in August, according to the China Passenger Car Association (CPCA). Among them, 42,463 were exported and 34,502 were sold domestically. The Model Y also achieved record monthly sales of 62,169 units in August, up 295% month-over-month and 261% year-over-year.
Under the soaring sales, Tesla is reevaluating the way it sells its products in China, Reuters reported on September 15, citing two people familiar with the matter. Tesla is considering closing some showrooms in flashy malls in cities like Beijing where traffic plunged during COVID restrictions. The shift would put more emphasis on stores in less-costly suburban locations that can also provide repairs.