It’s raining discounts in the world’s biggest EV market as Tesla has unleashed a torrent of price cuts across its China lineup. Tesla announced reduced sticker prices of 4-6% for the locally-produced Model 3 and Model Y, while the imported Model S and Model X saw eye-popping cuts of up to 22%.
The refreshed 2024 Model 3 now starts at just 231,900 RMB ($33,600), while the revamped Model Y rings in at 249,900 RMB ($36,300). Factor in local EV subsidies and these prices officially hit levels previously thought impossible.
So what’s behind Tesla’s big China markdown? Some see it as a desperate ploy to boost lagging Chinese demand amid fierce competition from rivals like BYD and Nio. But others view it as a savvy pre-emptive strike—a “stratospheric prix fixe” of sorts—aimed at cementing Tesla’s dominance before its rivals can catch up on costs.
This is the latest move since Elon Musk took over Tesla’s global sales, delivery, and service operations.
Whether it’s a sign of struggle or a strategic power move, one thing’s for sure: the EV price wars are heating up in China. And that could mean even cheaper Teslas coming to the world’s other big markets sooner than you think.