Tesla offers rare China inventory discounts to fight sliding Shanghai production sales

The discounts underscore Tesla’s sliding output and fading demand, as analysts warn of intensifying EV price battles Prices of Model 3 vehicles in inventory would be reduced by 5,000 yuan (US$745) each, while buyers of the Model Y could enjoy a discount of 10,000 yuan per unit, the US carmaker announced on Monday. The promotions would run until the end of September, Tesla China said in a statement. “Tesla has been refraining from cutting prices on its cars while resorting to subsidies for car insurance purchase or interest-free loans to drive up sales in China,” said Eric Han, senior ­manager at Shanghai consultancy Suolei. “The discounts it is offering this time are likely to trigger a fresh round of price competition amid weak consumer demand.” A 5,000 yuan price reduction translates into a 2.1 per cent discount to the 235,500 yuan retail price for a basic Model 3. An entry-level edition of Model Y, sold at 263,500 yuan, sees a price drop of 3.8 per cent after the 10,000 yuan discount.

Read the full article at the source →