China: Tesla Lowers Model Y Prices, Adds Model 3…

China: Tesla Lowers Model Y Prices, Adds Model 3 Insurance Subsidy

Tesla has decided to tweak its Model 3/Model Y offer in China, potentially to boost sales results and secure a strong third-quarter volume.

The first thing is that the company reduced the prices of the Model Y Long Range AWD and Performance versions by about $1,929 (14,000 CNY), which respectively means a 4.5 percent and a 3.8 percent cut.

Prices of the entry-level Model Y RWD and both Model 3 versions (RWD and Performance) remain unchanged for quite a while now. The basic specs are also the same as in early 2023.

Tesla Model 3/Model Y prices in China:

Model 3 RWD (LFP): $31,944 (231,900 CNY) - no change
Model 3 Performance: $45,718 (331,900 CNY) - no change
Model Y RWD (LFP): $36,352 (263,900 CNY) - no change
Model Y Long Range AWD: $41,310 (299,900 CNY) - down 14,000 CNY or 4.5%
Model Y Performance: $48,198 (349,900 CNY) - down 14,000 CNY or 3.8%

Despite the fact that the Model 3 prices still remain the same, it does not mean that there is no good news for customers. That's because Tesla announced a time-limited insurance subsidy for the Model 3 RWD from the existing inventory (cars already produced, but not yet ordered by anyone). A big note on the top of the ordering page says that ordering an existing Model 3 rear-wheel-drive version (between August 14 and September 30) will result in an insurance subsidy (qualified insurers only) of 8,000 yuan (about $1,102).

Expected delivery times for new Tesla Model 3 and Model Y cars in China are very short - 1-4 weeks for the Model 3 and 2-6 weeks for the Model Y.

It's tricky to say for sure, but there is always a chance that the manufacturer intends to clear its inventory before introducing the upcoming upgraded Model 3 (aka Highland), which according to speculation and rumors, should be on the market pretty soon (some reports say about September).

In terms of sales, according to the China Passenger Car Association (CPCA), the overall wholesale vehicle shipments (local retail sales and export) of Made-in-China (MIC) Tesla Model 3/Model Y cars in July amounted to 64,285. That's 128 percent more than a year ago, but also the lowest monthly sales result so far this year.

Local retail sales amounted to 31,423 (up 271 percent, up from a very low base a year ago), while export amounted to 32,862 (up 66 percent). The Model Y was responsible for more than two-thirds of all MIC sales.