Recently, Tesla has made price adjustments for the Model Y long-range and performance versions in the Chinese market, with price reductions of 4.5% and 3.8% respectively. The move is aimed at countering slowing sales in the Chinese market. In addition, Tesla also stated that it will provide an insurance subsidy of RMB 8,000 for customers who purchase the entry-level rear-wheel drive version of Model 3. The series of price adjustments reflect falling demand for Tesla globally and adjustments made to make certain models eligible for U.S. government tax breaks.
According to data from the China Passenger Car Association (CPCA), Tesla's sales in the Chinese market have declined month-on-month for the first time since the end of 2022, with sales in July falling 31% compared with June. However, globally, Tesla's vehicle deliveries in the second quarter of 2023 exceeded 466,000 vehicles, setting a new record for the brand.
Overall, the market remains optimistic about Tesla's prospects in the Chinese market. With the implementation of price adjustments, Tesla is expected to gradually regain its lost market share in the Chinese market.