Elon Musk's Tesla Slashes Model Y Prices In China By About $1,900

EV giant Tesla Inc TSLA has cut prices for some Model Y versions in China by as much as RMB 14,000 or about $1,934.

What Happened: The company announced in a Weibo post that it has cut the starting prices on both Model Y Long Range and Performance versions by RMB 14,000. While the Long Range will now start at RMB 299,900 ($41,403), Performance will now be priced at RMB 349,900 ($48,306), the post said.

The company also announced a limited-time insurance subsidy for inventory Model 3 rear-wheel drive vehicles of RMB 8,000 starting Monday.

Why It Matters: During the company’s second-quarter earnings call last month, CEO Elon Musk warned it may further cut prices on its vehicles.

"If the market condition is stable, I think prices will be stable. If they’re not stable, then we would have lower prices. Yes," Musk had said.

Tesla started cutting prices on its vehicles in China in October 2022. Though it also hiked prices in between, all versions of Model Y in the country remain cheaper than before the initial round of price cuts.

Photo Courtesy: Shutterstock.com

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