SHANGHAI: Tesla Inc has cut the price of its two higher-end Model Y vehicles in China by 14,000 yuan (US$1,900) in the latest salvo in a bruising price war.
The electric vehicle maker cut the price of its Model Y Long-Range and Performance to 299,900 yuan and 349,900 yuan respectively, the company announced on Weibo. The Model Y forms part of the stable of vehicles, together with the Model 3, which are the best-sellers for Elon Musk’s company.
The latest cuts come after Tesla last year triggered a price war in China that left rivals with little choice to follow suit. Prices of the Model Y Performance peaked at 417,900 and 394,900 for the Long-Range version. Tesla’s newest cut means a new all-time low prices for the higher-end Model Y’s sold in China.
An 8,000 yuan insurance subsidy handed out for purchase of Model 3 Rear-Wheel Drive vehicles was also extended until the end of next month.
The renewal of cuts contrast with a now-failed truce between 16 companies, including Tesla, organised by the China Association of Automobile Manufacturers in early July that was quickly retracted. However, the price war is starting to calm down, according to a Bloomberg analysis of data compiled by research provider China Auto Market.
Tesla’s China deliveries slumped 31% in July to the lowest level this year — just as the carmaker plans to soon unveil its revamped Model 3 “Highland” sedan from its Shanghai factory.
Clean car sales in China declined in July from June, though purchases shifted towards major players with BYD Co, Li Auto Inc and Nio Inc all reporting new sales records.