In China, Tesla has announced reduced prices for its Model Y in both Long Range and Performance variants as the American EV maker gets more aggressive in its bid to find new customers.
The starting prices for these variants have been lowered by CNY 14,000 or around RM9,000, perhaps in light of China's uniquely competitive electric vehicle (EV) market.
Specifically, the Model Y Long Range now starts at CNY 299,900 (around RM191k), showing a 4.5% decrease in price, while the Model Y Performance starts at CNY 349,900 (around RM223k), reflecting a 3.8% price reduction.
To further incentivise buyers, Tesla has also introduced insurance subsidies of CNY 8,000 for the rear-wheel drive Model 3 in China between August 14 and September 30.
A recent report from the China Passenger Car Association revealed a 31% drop in sales of domestically-produced Tesla vehicles in July compared to the previous month. This decline, the first since December, has prompted Tesla to take action to stimulate demand and improve its sales performance.
Tesla's CEO, Elon Musk, had previously mentioned the possibility of additional price cuts, even if it impacted the company's profit margins. Tesla has been proactive in adjusting prices, making multiple reductions in the United States, China, and other key markets since late last year.
The company has also implemented increased discounts and other incentives as part of its strategy to manage inventory, stay competitive, and navigate economic uncertainties.