According to publications in China, this week Tesla discounted two core models – Tesla 3 and Tesla Model Y in order to help the manufacturer deal with what is defined in China as “failure to meet sales targets”
This week Tesla discounted two core models – Tesla 3 and Tesla Model Y in order to help the manufacturer deal with what is defined in China as “failure to meet sales targets”.
According to the report in ‘Calcalist’, the price of the Tesla 3 in the base version has been reduced by about $2,000 and the price is now about $37,000. The Tesla 3 DUAL MOTOR has been reduced by $2,500 and the price is now about $49,000. In the case of Tesla Model Y, the base version (rear-wheel drive, not marketed in Israel) was reduced by $3,900 and the price is now about $40,500 (which is about 289,000 yuan).
Tesla car. illustration | Photo: Ansplash.
Calcalist explains that Tesla’s discounts in the Chinese car market have several reasons. While in the Tesla 3 it is a means to increase sales, in the Tesla Model Y it is a move towards a regulatory change: currently the Chinese government grants subsidies to electric vehicle buyers at a price of up to 300 thousand yuan. But starting this January, the only electric vehicles that will be eligible for government subsidies will have battery replacement technology, which leaves the basic version of the Model Y slightly above the price that qualifies it for the tax benefit this year. Tesla’s solution in this case is to discount the basic model to the buyers so that they can purchase it and receive the subsidies.
It turns out that unlike the Israeli car market, where the Chinese electric cars continue to be attacked, the Chinese car market has its own rules to meet production goals and competition, and where lowering prices for the consumer is definitely not a rude word… when in Israel? We will probably have to wait quite a while.