Taking advantage of new battery options and big government subsidies, Tesla has slashed its Model 3 prices in China. The company’s Chinese website is now advertising a base price for the popular battery-electric sedan of 249,900 yuan, or roughly $36,800.
While this is big news for the company in its efforts to remain dominant in the Chinese market, U.S. consumers won’t be affected…at least, not yet
Source: China Daily Read The Article
PSR Analysis: Tesla Model 3 has cut its price for the sixth time in China. Compared with the initial price of 355800 yuan, the price has dropped by nearly 30% in more than a year, which not only has a great impact on consumers, but also brings great pressure on competitors such as Weilai, BYD and Xiaopeng. The main reason for the price reduction is that the former ternary lithium battery was replaced by the lithium iron phosphate battery of Ningde, and the cost is lower. In the short term, it will bring a lot of pressure to domestic new energy vehicle enterprises.
At the same time, China’s new energy vehicle enterprises will be forced to increase their innovation efforts and improve their strength in competition with international enterprises and domestic new energy vehicles.
Sales and population of electric vehicles is still small in the Chinese market, compared with traditional fuel vehicles. The frequent price reductions of Tesla’s products will accelerate consumer awareness of electric vehicles, strengthen the market development of electric vehicles, and speed up the transformation of the entire fuel vehicle industry to new energy vehicles. PSR
Jack Hao is Senior Research Manager-China, for Power Systems Research
