Tesla Cuts Price of Model 3 and Y in China, Announces Price of Model S and X
On January 6, the starting prices of Tesla’s Model 3 and Model Y in China dropped to 229,900 yuan ($33,458) and 259,900 yuan ($37,825) respectively, the lowest prices ever for both vehicles, with an estimated delivery period of one to four weeks.
Tesla China cut prices several times last year in an effort to promote sales. However, at the beginning of 2023, national subsidies for new energy vehicles were withdrawn, and many domestic car companies chose to go against the trend with the announcement of price increases, such as BYD’s increase by 2,000-6,000 yuan, NETA Auto’s by 3,000-6,000 yuan and GAC Aion’s by 3,000-8,000 yuan.
Tesla also announced the prices of its Model S and Model X in the Chinese market. The dual-motor all-wheel drive version Model X and Model S are priced at 879,900 yuan and 789,900 yuan respectively, while the three-motor all-wheel drive version Model X Plaid and Model S Plaid are priced at 1,039, 900 yuan and 1,009,900 yuan respectively.
Tesla demonstrated its Model S Plaid and Model X Plaid for the first time at the fifth China International Import Expo (CIIE), which opened on November 5 last year. They are equipped with maximum power of 750kW, acceleration time of 2.1 seconds and 2.6 seconds respectively, and CLTC cruising range of 672 km and 664 km.
According to an estimation by the China Passenger Car Association, in 2022, the Tesla’s Shanghai Gigafactory delivered more than 710,000 vehicles throughout the year, a year-on-year increase of 48%. The Model Y delivered more than 450,000 units, almost equalling Tesla China’s total delivery of 480,000 vehicles in 2021. Tesla delivered a total of 1.31 million vehicles worldwide in 2022, with the Shanghai Gigafactory accounting for 54.2%.
In August 2022, the one-millionth vehicle of Tesla’s Shanghai factory was completed, taking less than three years since the first Chinese-made model. According to Tesla, behind this production efficiency are its brand-new automaking ideas and industrial resources, such as streamlining production steps, shortening production time and reducing manufacturing costs. In the factory, several manufacturing links are integrated, and the three-dimensional space is used efficiently.
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According to statistics by the China Passenger Car Association, from January to November last year, the cumulative wholesale volume of BMW, Mercedes-Benz and Audi in the Chinese market was about 550,000, 510,000 and 530,000 respectively. Industry insiders believe that Tesla will be the top luxury brand firm in the Chinese market, in terms of deliveries. The association estimated that the wholesale volume of new energy vehicles in China will be 6.49 million units in 2022, an increase of 96% compared with 3.31 million units in 2021.
