Tesla has a factory in Shanghai where they manufacture the Model 3 and Model Y. They provide two versions of the Model 3 and three versions of the Model Y to customers in China. All of these versions have fallen in price.
For example, the entry-level, rear-wheel drive Model 3 starts at RMB 265,900 ($36,690) after subsidies. This is a decrease of RMB 14,000 ($1,927) from it's previous price of RMB 279,900 ($38,538).
The entry-level rear-wheel drive Model Y has an updated starting price of RMB 288,900 ($39,777) after subsidies, a decrease from the prior RMB 316,900 ($43,634).
Tesla is not only lowering the price of its entry-level Model Y, but it's also offering silver paint for free. Tesla had been charging RMB 8,000 ($1,100) for silver paint previously. All Model 3 and other versions of the Model Y are currently only available in black paint for free.
According to Sun Shaojun, founder of local car consumer platform Che Fans, local Chinese brands are growing too fast and putting Tesla up against a wall. The average number of visitors to Tesla stores has recently dropped by 50 percent compared to April and May this year. In April and May, the store had 30 to 35 batches of visitors per day, whereas now it only receives 15 to 17 batches per day.
Lower prices might make Tesla more appealing to potential customers.
Source: Cnevpost
