Tesla cuts prices amid price war in China

Tesla may be seeing strong success here in Singapore, but it seems the outlook for the firm where it truly matters - in China - is not as rosy.

The firm has announced fresh price cuts of up to $2,600 (14,000 yuan) for its all-electric Model Y SUV, which comes priced from 299,000 yuan to 349,000 yuan in China. The Model 3 all-electric sedan, meanwhile, is now being offered with an 'insurance subsidy' of $1,500 (8,000 yuan) in China, although this discount is set to last only until September 2023.

Prices for the Tesla Model Y SUV have been dropped by up to 14,000 yuan in China as Chinese domestic manufacturers continue to win new market share in China

Reports across the internet state that these price cuts come as the firm engages in a price war to maintain market share against China's domestic manufacturers, including BYD, Nio and Xpeng.

According to data from the China Passenger Car Association, Tesla sales hit a total of 64,285 China-made electric vehicles in July 2023. BYD meanwhile, saw sales in the month hit a total of 261,105 passenger vehicles (including 18,169 exported units), representing a 61% year-on-year rise.

The news comes even as Tesla continues to see manufacturing upgrades to its Shanghai Gigafactory. The plant is said to have delivered a total of 710,000 vehicles in 2022, an increase of 48% from 2021.

Speculation is additionally rife across the net as to the reveal date of an updated Model 3, also known as Project Highland, as leaked photos of the car continue to emerge on Twitter. Fans of the brand are expecting an official reveal of the new car to happen by August, and for deliveries of the updated model to begin come October 2023.