Tesla Cuts Model Y Prices in China & Offers Insurance Subsidy for Model 3
Tesla (NASDAQ: TSLA) cuts Model Y Long Range and Performance prices in China by about 4%. In addition, the manufacturer offers insurance subsidies for the base Model 3 in stock.
Tesla has again stepped up the fight for consumers in China. The company cut the price of its Model Y SUV and began offering insurance subsidies for the Model 3 sedan. On Monday, prices for the Model Y Long Range and Model Y Performance were cut by 14,000 yuan (about $1,930). This corresponds to about 4 percent. Thus, the starting price of the Model Y Long Range fell to 299,900 yuan (about $41,300) from 313,900 yuan, and the starting price of the Model Y Performance fell to 349,900 yuan (about $48,190) from 363,900 yuan. The starting price of the base Model Y with rear-wheel drive remains unchanged at 263,900 yuan (about $36,345).
In addition to lowering the price of the Model Y, Tesla has begun offering an insurance subsidy for the purchase of the Model 3. The offer only applies to base version vehicles that are in stock. The subsidy is 8,000 yuan (about $1,100). Consumers can take advantage of this offer between August 14 and September 30 if they purchase car insurance from an insurance company that works with Tesla.
Tesla sold 64,285 Chinese-made vehicles in July, including both in the domestic market and exported, according to data from the China Passenger Car Association (CPCA). This is the lowest quantity for the year. It is associated with the fact that Giga Shanghai was re-equipped in connection with the transition to the production of the updated Model 3, codenamed Highland. It is expected that the updated car could be put into production in September.
--------This article is partly excerpted from Investor's Business Daily.
