Reducing Model 3's range to 830 kilometers price in China by $1,400, just a month following its release by Tesla

Tesla Announces Price Drop and New Model 3 Variant in China

Tesla has made several significant announcements regarding its Model 3 sedan in China. On August 12, the company launched a new long-range rear-wheel drive Model 3 variant, expanding the Model 3's lineup to four variants in the region.

This new variant comes with a 100-kWh long-range pack, leading to further price cuts. The long-range rear-wheel drive Model 3 sedan is now priced at RMB 259,500, a decrease of RMB 10,000 from its previous price. Tesla also lowered the price of this model by an additional RMB 10,000 in September 2021.

In July, retail sales of the Model 3 in China totaled 9,851 units, marking a 0.78% year-on-year decline and a 40.79% decrease from June. However, the Model 3 exported 12,197 units from China in the same month, up 228.76% month-on-month, despite a 46.47% year-on-year decrease.

From January to July, Model 3 retail sales in China totaled 101,770 units, representing a 26.54% year-on-year increase. During the same period, Model 3 exports totaled 70,718 units, down 42.00% year-on-year.

The top-tier performance Model 3 variant requires 3-5 weeks for delivery, while the other three variants have wait times of 1-3 weeks. In contrast, the delivery and pricing for Tesla's other locally produced model, the Model Y, remain unchanged.

From January to July, Model Y retail sales in China totaled 202,257 units, down 17.15% year-on-year. During the same period, the Model Y SUV exported 57,615 units from China, a 6.17% increase year-on-year. In July, Model Y retail sales in China were 30,766 units, a 15.24% year-on-year decrease and 31.4% month-on-month decrease.

Tesla continues to offer purchase incentives for the Model 3 in September, including 5-year zero-interest financing and an RMB 8,000 insurance subsidy. These incentives aim to boost sales and make electric vehicles more accessible to a wider audience in China.

The two higher-priced Model 3 variants in China feature dual motors. The Model 3 variant with an 830-km CLTC range, the highest in the lineup, is one of these variants. This model offers an impressive range, making it an attractive option for long-distance travel.

In conclusion, Tesla's announcements of a new Model 3 variant and price drops aim to revitalise sales in China. The company's continued offering of purchase incentives and the attractive features of the new Model 3 variants are likely to attract more customers and contribute to the growth of electric vehicle adoption in China.