The Tesla Model 3 and Model Y now cost nine percent less in China than they did last week – the equivalents of U.S. $36,700 and $39,600, respectively. In all likelihood, the company is determined to stay on the lucrative market despite growing (cheaper) competition.
With carmakers like BYD, Nio, SAIC and Xpeng actively developing their own electric car lineups, it looks like slashing of the prices was just a matter of time for Tesla.
Earlier this month, Tesla CEO Elon Musk said China and Europe were experiencing a recession of sorts that prevented the company from achieving its production targets. For example, September sales in China rose by only 2.5 percent, as opposed to the expected 3.3 percent.
At the same time, Tesla was successful in intensifying its production in Shanghai, going from roughly 17,000 units in July to 22,000 in September.
According to the China Passenger Car Association, local manufacturers accounted for roughly 80 percent of all nature-friendly vehicles sold in the country in the first seven months of the current year. Tesla ranked third in overall sales, having shipped 81,135 Shanghai-made EVs to their owners in September.