Historically Lowest, the Chinese Tesla Model 3 Witnessed a Huge Price Drop, Starting at RM 152,800

On April 21st, according to Tesla China's official website, the prices of all its models were reduced by 14,000 RMB. Among them, the starting price of Model 3 dropped from 245,900 RMB to 231,900 RMB, which is only 2,000 RMB away from the lowest historical price of 229,900 RMB. It was on January 6, 2023, Tesla Model 3/Y began to drastically cut prices, setting off the craziest "price war" in history. However, it's worth mentioning that the price reduction at that time was for the old Model 3, while today it is for the renewed Model 3, which has been improved in luxury, comfort, and continued journey. Therefore, objectively speaking, the current 231,900 RMB Model 3 renewal is more cost-effective than the old Model 3 at 229,900 RMB.

The starting price of the Tesla Model Y has dropped from 263,900 RMB to 249,900 RMB, refreshing the lowest price in history. The previous lowest price was 259,900 RMB. At this price, the Model Y has seen a surge in sales, with monthly sales exceeding 50,000 units and hitting a high of 60,000/month. The cumulative sales in 2023 were 456,892 units, winning the sales champion of all types of models. However, in the first quarter of this year, the cumulative deliveries of Model Y were 100,366 units, a year-on-year increase of 6.04%, showing a slowdown in growth. Now with the price drop to 249,900 RMB, it is expected the sales will rise in a new round, further consolidating its leading position in the market.

Also, the starting price of the Tesla Model X has been reduced from 748,900 RMB to 724,900 RMB, and the starting price of the Model S has been reduced from 698,900 RMB to 684,900 RMB. These two models have seen multiple price reductions, with previous reductions exceeding 50,000 RMB. Even with such high discounts, sales of the Model X/S have been very bleak, and a further reduction of 14,000 RMB is like a drop in the bucket.

Overall, this 14,000 RMB reduction for the Tesla Model 3/Y has a significant impact on competitors in its class. It is estimated that major car manufacturers in China will also follow suit with discounts or promotions to consolidate their market competitiveness, so as not to be eroded by Tesla's market share.