Tesla slashes Model 3 prices to gain foothold

Source: Xinhua | 2018-12-25

TESLA has slashed prices of its Model 3 sedans in China, according to the US electric carmaker’s official website yesterday.

The price of the Model 3 Dual Motor All-Wheel Drive has been cut from 540,000 yuan (US$78,302) to 499,000 yuan while the Model 3 Performance is 35,000 yuan cheaper, with the new price set at 560,000 yuan.

This is not the first time Tesla has lowered the prices of its Model 3 sedan, which will be delivered to Chinese customers from the new year. Tesla has started taking orders through online bookings with a deposit of 8,000 yuan.

On November 16, the first batch of Tesla Model 3 customers in China received a confirmation e-mail.

The Model 3 Dual Motor All-Wheel Drive was priced at 588,000 yuan and the Model 3 Performance at 698,000 yuan.

Li Yanwei, an analyst at the China Automobile Dealers Association, said on November 16 that “with the earlier price of 588,000 yuan, Tesla’s Model 3 was more expensive than the Porsche Macan, the Mercedes-Benz GLC, BMW X3, BMW 5 Series and Mercedes-Benz E-Class, which was not competitive.”

Tesla did not respond to Shanghai Daily about the reasons for the latest changes.

Tesla said in November it plans to produce 3,000 Model 3 sedans per week in Shanghai when its plant becomes operational in about three years.