Tesla Cuts Model 3/Y Pricing Again in China, Model S/X Pricing Revealed

Tesla China has announced yet another round of price cuts for Model 3 and Model Y, while also revealing the prices of Model S and Model X.

“Tesla S3XY, new car, new price!”, said Tesla on its Weibo account. Check out the price for the Model S and Model X, now available:

• Model S – 789,900 yuan ($114,993 USD)
• Model S Plaid – 1,009,900 ($147,267 USD)
• Model X – 879,900 yuan ($128,095 USD)
• Model X Plaid – 1,039,900 ($151,641 USD)

Also, the Model 3 and Model Y also saw another price drop, this time drastically, up to 13.5%. Previously, Tesla had reduced prices to match the end of federal NEV subsidies that expired in China on December 31, 2022. But those bonus subsidies to match expiring NEV subsidies have ended from Tesla, instead pricing just dropping to increase competitiveness in the Chinese market.

New pricing is as follows for Model 3, now starting at under $33,500 USD:

• Model 3 RWD – 229,900 yuan ($33,468 USD); was 265,900 yuan; 36,000 yuan drop (13.5%)
• Model 3 Performance – 329,900 yuan ($48,026 USD); was 349,900 yuan; 20,000 yuan drop (5.7%)

According to @TroyTeslike, the entry Model 3 RWD pricing now rivals the BYD Seal Standard Range RWD at 225,800 yuan, meaning a price war is now on in China.

Tesla has just dropped its prices in China. The Model 3 Standard Range RWD now starts at ¥229,900. It was ¥265,900 from 24 Oct 2022 until now.

230K Yuan is about the same as the BYD Seal Standard Range RWD. I love this. The price war is on. Tesla is going all out. pic.twitter.com/WdDyfe1a2W

— Troy Teslike (@TroyTeslike) January 6, 2023

Here’s the new Model Y pricing, now starting at under $38,000 USD:

• Model Y RWD – 259,900 yuan ($37,836 USD); was 288,900 yuan; 29,000 yuan drop (10% drop)
• Model Y Long Range – 309,900 yuan ($45,115 USD); was 357,900 yuan; 48,000 yuan drop (13% drop)
• Model Y Performance – 359,900 yuan ($52,394 USD); was 397,000 yuan; 38,000 yuan drop (9.5% drop)

“With Tesla, a wonderful new year!” said Tesla. These new prices come ahead of the Chinese New Year, set to begin on January 22, 2023.

Check out a chart of these Tesla China price drops below by Roland Pircher:

Today @Tesla reduced prices in China to boost demand. The prices of the individual models have never been as low as they are now. #TSLA https://t.co/MkQWKV0qwF pic.twitter.com/dOxGSdfSfg

— Roland Pircher (@piloly) January 6, 2023

According to Tesla China VP Grace Tao, she said yesterday (via Google Translate), “Behind Tesla’s price adjustments, there are countless engineering innovations, which are essentially unique and excellent laws of cost control: including but not limited to vehicle integration design, production line design, supply chain management, and even millisecond-level optimization of robotic arm coordination route. Start from “first principles” and insist on pricing based on cost. Respond to the country’s call with practical actions to promote economic development and release consumption potential. 2023 let’s welcome a better life together.”

Grace Tao explains price cut in China, saying that Tesla is taking practical action to respond to China's national call to promote economic development and unleash consumer potential. She also said that Tesla started from the "first principle" and insisted on pricing at cost. pic.twitter.com/kPPQfZEa2W

— Yan Chang (@cyfoxcat) January 6, 2023

Tesla has also cut prices of Model 3 and Model Y in Australia, Japan, New Zealand, and South Korea.

Back in November, rumors pointed out that Tesla was ready to cut Model 3 and Model Y prices in China. The company denied the reports, and now we’re seeing these price cuts come to life, in what looks like a move to increase demand. Tesla saw its December sales in China dip, despite setting a quarterly record for deliveries.