Marked down Tesla vehicles spark China price war
Tesla marks down its prices, causing a price war in China, by selling vehicles there for as much as 50% less than what they cost in Europe and the United States. The Tesla Model 3 sedan and the Model Y crossover are both manufactured at a plant just outside Shanghai. The massive markdown is forcing rival vehicle manufacturers to slash prices also, in an effort to maintain sales.
Tesla cuts Model Y, Model 3 prices
Tesla cuts US prices for Model Y Long Range and Performance models by $3,000 each and the price of the Model 3 Rear-wheel Drive by $2,000 to $39,990, the sixth time it has lowered US prices this year. Tesla has cut prices of its base Model 3 by 11% so far this year and its base Model Y by 20% — moves that come as the United States, its largest market, prepares to introduce tougher standards that will limit EV tax credits.
Tesla delivers record number of cars after price cuts
Tesla says it delivered a record number of vehicles for the three months from April to June, delivering 466,140 vehicles, 80% higher than last year. The company says it lowered prices in markets including the US, UK and China to compete with rival manufacturers. The company is due to report its financial results for the second quarter on 19 July. Musk,
We’re not ‘starting a price war’, we’re just lowering prices to enable affordability at scale.
Musk: Tesla may cut prices in ‘turbulent times’
On an analysts’ call, Musk says that he will cut prices again on Tesla’s vehicles due to “turbulent times”:
One day it seems like the world economy is falling apart, next day it’s fine. I don’t know what the hell is going on. We’re in, I would call it, turbulent times.
Tesla shares fall nearly 5% after Musk’s comments.
Tesla cuts China Model Y prices
Tesla lowers prices on its Model Y long-range and performance versions in China. The move comes after sales of China-made Tesla vehicles fell 31%, and it is followed by a 2.7% drop in Tesla shares. Tesla reduced the starting prices of both models by 14,000 yuan ($1,935). The Model Y Long Range’s starting price is down 4.5% to 299,900 yuan, and that of the Model Y Performance is down 3.8% (349,900 yuan). Between August 14 and September 30, Tesla is also offering insurance subsidies in China of 8,000 yuan for buyers of the entry-level, rear-wheel-drive versions of the Model 3.