Weeks after pledging to help stop the ongoing discount war among electric vehicle manufacturers in China, Tesla has again slashed EV prices in the country. The American electric vehicle maker cut prices for the Model Y by $1,900 (14,000 yuan), bringing the cost of the Performance and Long Range versions down to $41,309 (299,900 yuan) and $48,196 (349,000 yuan) respectively.
Tesla announced on its official Weibo account that it would extend its $1,102 (8,000 yuan) insurance subsidy for the base Model Y model to the end of August. Customers living close to Tesla manufacturing centers can also expect to enjoy reduced luxury EV prices as Tesla clears out inventory in an attempt to increase delivery numbers and meet investor benchmarks.
The Austin, Texas-based electric vehicle company began cutting vehicle prices in the Chinese market around a year ago, which led to a discount war that saw several other local EV makers reduce their prices to remain competitive. Tesla has reduced prices several more times since then, and by January, Tesla vehicles were up to 50% cheaper on the Chinese market compared to America.
In April, Tesla cut vehicle prices for the sixth consecutive time in 2023 alone to mitigate the loss of EV tax credits and increase demand for its electric offerings. The China Association of Automobile Manufacturers has been unimpressed with Tesla’s recent price cuts, stating that Tesla was artificially impacting China’s electric vehicle market and issuing the company several warnings.
Tesla eventually agreed to join a pledge with other major carmakers in the country that would see them limit price discounting to avoid affecting the EV market. Tesla CEO Elon Musk went back on the promise just a week later and informed investors that the company would reduce vehicle prices even further due to uncertain market conditions in China and the global economy.
The company reigned supreme over the Chinese EV market, capturing a large swathe of the market and selling the most popular electric vehicle in the country before competition from local automakers such as Xpeng, Nio and BYD began eating into its profits. Despite ramping up production in its Shanghai gigafactory, Tesla is slowly conceding market to domestic automakers.
Chinese automakers such as BYD have consistently encroached on Tesla’s market. In 2022, BYD surpassed Tesla in electric vehicle sales with slightly more than 1.8 million mostly local vehicle deliveries to become the largest seller of alternative energy vehicles on the globe.
It remains to be seen how other China-based EV makers such as Kandi Technologies Group Inc. (NASDAQ: KNDI) will react to this latest price reduction by Tesla.
About Green Car Stocks
Green Car Stocks (GCS) is a specialized communications platform with a focus on electric vehicles (EV), as well as other emerging market opportunities in the green sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to millions of social media followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled visibility, recognition and brand awareness. GCS is where news, content and information converge.
To receive SMS text alerts from Green Car Stocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.greencarstocks.com
Please see full terms of use and disclaimers on the Green Car Stocks website applicable to all content provided by GCS, wherever published or re-published: https://www.greencarstocks.com/Disclaimer
Green Car Stocks
Los Angeles, CA
www.greencarstocks.com
415.949.5050 Office
[email protected]
Green Car Stocks is part of the InvestorBrandNetwork.
