Tesla drastically cuts the price of its Model Y in China

Now manufactured locally, the Tesla Model Y is offered from 339,900 yuan on the Chinese market, causing the manufacturer to collapse under orders. Tesla has no trouble selling its cars, but regularly launches new offers. In China, Model Y thus saw its price drop drastically in the early hours of […]

Tesla Model Y and China

Now manufactured locally, the Tesla Model Y is offered from 339,900 yuan on the Chinese market, causing the manufacturer to collapse under orders.

Tesla has no trouble selling its cars, but regularly launches new offers. In China, Model Y thus saw its price drop drastically in the early hours of 2021. How to explain it?

First, the Model Y’s price drop is significant, around -30%. The basic version Large Autonomy goes from 488,000 to 339,900 yuan (ie from 60,770 to 42,325 euros). The Model Y Performance also drops from 535,000 to 369,900 yuan (66,622 to 46,063 euros).

The explanation is quite simple. Initially, the Tesla Model Y came from California, just like the Model S and X. However, since December 2019 the brand has deployed its local factory, the “Gigafactory Shanghai”. This site producing the Model 3 is now assembling the Model Y in its new extension and will begin deliveries in January. Without import costs, customs duties and with cheaper production, the electric SUV is therefore cheaper.

The Model 3 too!

According to Tesmanian, pre-orders would have exceeded 100,000 units in less than 10 hours. The Tesla site would have saturated under heavy traffic according to the official Weibo account. However, the high price of Tesla’s electric SUV does not allow it to claim the purchase bonus, reserved for models below 300,000 yuan. According to MSN, the firm of Elon Musk would have all the same asked to integrate the aid system up to 37,000 yuan (4,607 €).

The Model 3 Performance follows suit, with 339,900 against 419,800 yuan (42,325 vs. 52,277 €). The Large Autonomy version has however disappeared from the site, but the Standard Plus remains at 249,900 yuan (31,119 euros).

While Tesla customers already interested are happy with this news, their competitors are not. Nio takes a dim view of this new price list, with its ES6 starting at 358,000 yuan, therefore more expensive than the Model Y.

The same in France?

Could this decrease occur in France? Not so sure. The production of the SUV will be local, and located within the future Gigafactory in Berlin. Nevertheless, the production costs are much higher than in China. We should therefore not expect to see the current price of € 63,000 drop by 30%, although a small discount is possible.

Janelle B. Smith

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