Tesla has cut the price of Model 3 and Model Y vehicles in China by 9 percent. The decision partially reversed a trend of rising prices in the world’s largest auto market as demand showed signs of slowing. In addition, analysts believe that the company led by Elon Musk may take this decision due to the fear of price war with local EV companies. News Reuters.
The price reduction information was found on the Chinese website on Monday in the list of Electric Vehicles. In 2022, such an example was seen for the first time in China. Last month, Tesla began taking several steps for those who took the initiative for Tesla insurance.
The move to cut prices comes as the electric vehicle giant’s chief executive, Elon Musk, says a slowdown is looming in China and Europe. He also said that they will fail to meet their vehicle supply targets this year.
Musk told analysts last week that demand was very strong in the current quarter and that he expected Tesla to be resilient to the downturn.
According to Tesla’s Chinese website, the starting price of the Model 3 has been reduced from 279,900 to 265,900 Yuan ($36,727). And the price of Model Y Sports Unity Vehicle has been reduced from 3 lakh 16 thousand 900 to 2 lakh 88 thousand 900 Yuan.