Tesla China And US Pricing Difference Widens Further: Model 3, Y EVs Now Up To 32% Cheaper In Asian Country

Tesla Inc. TSLA announced a fresh round of price cuts in China and the latest salvo has created a wide differential between the pricing in the country and the U.S.

What Happened: The price changes on Tesla China’s website points to price reductions in the range of 5.7%-13.5%.

Here’s how much each of the vehicle models and their variants is priced in China and the U.S. currently:

Model 3

• Rear Wheel Drive, or RWD, Model 3: 229,900 yuan ($33,523) Vs. $46,990, before potential savings (-28.67%)
• Model 3 Performance: 329,900 yuan ($48,097) Vs. $62,990 (-23.64%)

See Also: Best China Stocks

Model Y

• Model Y RWD: 259,900 yuan (this model is not on sale in the U.S.)
• Model Y dual-motor, all-wheel drive, or AWD, Long Range Edition: 309,900 yuan ($45,174) Vs. $65,990 (-31.54%)
• Model Y AWD Performance: 359,900 yuan ($52,458) Vs. $69,990 (-25.05%)

Model S

• Model S dual-motor AWD: 789,900 yuan ($115,117) Vs. $104,990
• Model S Plaid Edition:1.01 million yuan ($147,194) Vs. $135,990

Model X

• Model X dual-motor AWD model: 879,900 yuan ($128,223) Vs. $120,990
• Model X Plaid Edition: 1.04 million yuan ($151,568) Vs. $138,990

Benzinga’s Take: The price cuts of Tesla’s cheapest models — Model Y and Model 3 — will likely help the company compete better with the competitively priced models of domestic upstarts such as BYD Manufacturing Company Limited BYDDY BYDDY, XPeng Inc. XPEV and others.

The company can, to some extent, justify the price differentials between the U.S. and China as the Made-In-China cars have higher margins. The Model S and X production is not done locally, which explains the premium pricing over the corresponding vehicles in the U.S.

Price Action: Tesla closed Thursday’s session at $110.34, down 2.90, according to Benzinga Pro data.

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