Tesla may be looking to cut Model 3 and Y prices in China for a third time this quarter, following recent price cuts that did not seem to boost sales, according to a report from Huxiu (via Seeking Alpha).
The Model 3 and Y prices were cut in China by as much as nine percent in October, with the addition of an RMB 8,000 ($ USD) discount paid out on the final payment in November. The October price cut led to roughly 50,000 new orders in China, rather than reaching 100,000-170,000 as many rumors on the internet suggested.
Tesla China denied the Huxiu report to Sina Technology, saying it was not true. But it’s worth noting Huxiu claimed back in September that a Tesla price cut in China was coming, and it did indeed happen in October.
Tesla Model 3/Y Delivery Wait Times Improve in China https://t.co/V3UV6pc4BJ
— TeslaNorth.com (@RealTeslaNorth) November 15, 2022
The additional price cuts have raised red flags for some, as the previous price cuts may not have “stimulated demand” quite the way Tesla or other firms expected them to. Tesla’s Gigafactory Shanghai currently produces more vehicles than the automaker can sell, and the new round of price cuts could further incentivize customers to buy.
Tesla’s Model 3 currently starts at RMB 265,900 ($37,110 USD) while the dual-motor all-wheel-drive version starts at RMB 349,900 ($48,833 USD). The Model Y is available ranging from RMB 288,900 ($40,320 USD) to RMB 397,900 ($55,532 USD), depending on which model buyers select.
Competitors NIO, Xpeng Motors and Li Auto have also seen sales drop in recent months, due to COVID-19 control efforts in China that have made impacts on manufacturing and overall sales.
