Earlier today, Tesla quietly announced new pricing for the China market. The Model 3 and Model Y saw their prices cut drastically, and Tesla finally revealed the pricing for the high-performance Plaid edition of the Model S and Model Y, both of which were not previously sold in market.
This is the second pricing cut by Tesla for the lower-priced models in three months. In late October, the automaker announced price cuts up to 9% on the Model 3 and Model Y.
The Model 3 is now priced at CNY 229,900 ($33,415), down from CNY 265,900, a reduction of CNY 36,000 ($5,240). The Model Y is now priced at CNY 259,900 ($37,775), down from CNY 288,900, a reduction of CNY 29,000 ($4,220). The Model S Plaid will cost 789,900 ($114,809) and the Model X Plaid will cost 879,900 ($127,890).
Today’s announcement came days after the company’s most recent financial report, revealing lower than expected worldwide vehicle shipment numbers. Specifically for China, earlier today, the China Passenger Car Association (CPCA) reported Tesla vehicle shipments dropped 44% to 55,796 in November as the automaker reduced factory output and cut prices amid reduced demand.
The CPCA report shows that Tesla was outsold by two rivals: BYD and SAIC-GM-Wuling Automobile Co, the joint venture of General Motors in China. BYD notably outsold Tesla over four to one, delivering 234,598 vehicles.
SAIC-GM-Wuling Automobile Co, the joint venture of General Motors in China making small budget EVs, also outsold Tesla by 53%, according to the association.
Still, Tesla saw growth in China over the year. The CPCA report notes that Tesla delivered 50% more vehicles produced by its Shanghai plant over 2021 levels.
Tesla’s Shanghai plant had temporarily paused production in December and is reportedly set to run at a reduced output in January.
Tesla’s China division recently saw a major leadership shakeup. Reuters reported two days ago Tesla CEO Elon Musk promoted Tom Zhu to run its U.S. assembly plants and sales operation in North America and Europe. This makes him the second-highest executive at Tesla, surpassed only by Elon Musk. It’s unclear if Zhu will retain his current titles and duties as well, as Reuters notes.