Tesla forced to slash prices in China – Reuters

6 Jan, 2023 13:24 / Updated 2 years ago
Cheaper EVs reportedly present stiff competition

Tesla has reduced prices for its vehicles in China by up to 13.5% due to low sales and deliveries, Reuters reported on Friday, citing the Chinese website of the US electric car maker.


The prices of all versions of Tesla’s Model 3 and Model Y were reduced by between 6% and 13.5%, Reuters writes, citing its own calculations, based on prices shown on the Tesla.cn website.

The US carmaker had already cut the prices of those models by up to 9% in October. Since September the company has also been offering incentives to Chinese buyers.

The slump in demand has been partly attributed to the end of China’s more than decade-long subsidy for electric car buyers. Among other factors are stiff competition from domestic companies producing cheaper electric vehicles, and the latest Covid outbreak in the country.

Tesla delivered 44% fewer China-made electric vehicles last month than in November, and in year-on-year terms, sales fell by 21%, including exports, according to data from the China Passenger Car Association (CPCA) published on Thursday. China accounts for roughly 40% of Tesla’s sales.

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