(Yicai Global) Oct. 24 -- Tesla, which has raised its prices several times in China over the past year, has cut the prices of its China-made vehicles to a range that allows for domestic new energy vehicle subsidies.
The minimum selling price of the popular Model Y dropped below CNY300,000 (USD41,370), back to a subsidy-qualifying range, Tesla China's website showed today.
The most affordable type of Model 3s, the rear-wheel drive, costs CNY265,900 now, down by CNY14,000 (USD1,930). The high-performance one is priced at CNY349,900, or CNY18,000 lower than before.
The price of the RWD Model Y was decreased by CNY16,912 to CNY299,988, while that of the long-range one was lowered by CNY37,000 to CNY357,900, and that of the high-performance one was cut by CNY20,000 to CNY397,900.
When the RWD Model Y price comes back to below CNY300,000, buyers can get a subsidy of CNY11,088, resulting in a discounted price of CNY288,900, according to the country's subsidy policy. However, the policy will expire this year.
Since November 2021, the American electric vehicle giant has raised its prices six times in China due to surging raw material costs. The price hikes of China-made Model 3s and Model Ys ranged between CNY30,000 and CNY40,000.
Despite the price hikes, Tesla's sales in China jumped by 55 percent to 318,000 units in the first nine months of this year from a year ago, per statistics from the China Passenger Car Association. Meanwhile, sales of Model Y vehicles more than doubled to 219,100 units.
Tesla has accelerated its delivery in China thanks to the increased capacity of its Shanghai Gigafactory. Late last month, industry insiders predicted that the company will cut its prices to stimulate demand. But Tesla denied the rumors at that time.
Editor: Emmi Laine, Xiao Yi