Tesla officially announced a price reduction for certain versions of its Model 3 and Model Y in the North American market: The starting price of the standard version of Model 3 has been reduced from the previous $40,240 (equivalent to approximately RMB 294,000) to $38,990 (equivalent to approximately RMB 285,000); the long-range version of Model Y was adjusted from $50,490 (equivalent to about RMB 369,000) to $48,490 (equivalent to about RMB 354,000).
Although this price reduction in the North American market seems substantial, the starting price of Tesla's Chinese models remains the lowest globally. The currently available new Model 3 in the Chinese market starts at RMB 259,900, which is about RMB 25,000 cheaper than the reduced price of the U.S. version. The starting price of the new Chinese version of the Tesla Model Y is RMB 263,900, even cheaper by approximately RMB 90,000 than its U.S. counterpart.
According to the disclosed third-quarter data, Tesla produced a total of 430,500 units worldwide and delivered 435,100 units. Both production and delivery figures are below the market estimates of 462,000 units and 456,700 units respectively. Some market analysts believe that the primary reason for Tesla's production and sales not meeting expectations is the sluggish market demand, rather than factory shutdowns and upgrades, as claimed by Musk.
As of now, Tesla's delivery target for 2023 remains unchanged at 1.8 million units. The pressure to meet sales figures is still high. Thus, the recent price drop in the North American market is an effort to further stimulate sales.
