On July 1, Tesla China's official website revealed an update to the long-range all-wheel-drive versions of the Model 3 and Model Y. The price of the Model 3 Long-Range has been increased by RMB 10,000, now priced at RMB 285,500, while the Model Y Long-Range remains unchanged at RMB 313,500.
The updated versions offer improved range. The Model 3 Long-Range AWD now boasts a CLTC range of 753 km and an enhanced 0–100 km/h acceleration time of 3.8 seconds. The Model Y Long-Range AWD has a CLTC range of 750 km.
Both models are equipped with a newly designed battery pack. Although the battery capacity remains the same, the chemical composition has been updated, and vehicle-wide optimizations have resulted in extended driving range. The new battery is also expected to offer greater durability. Notably, the Model 3's improved acceleration was achieved not through hardware changes, but by making the "Acceleration Boost" software package standard.
This is not the first time Tesla has raised prices in China. In 2023, Tesla adjusted its prices four times in a single month. In April last year, the Model Y's price increased by RMB 5,000, and in August, the Model S and Model X were increased by RMB 19,000. However, Tesla China has also reduced prices multiple times in the past. Two years ago, it initiated a price war by slashing prices across the entire Model 3 and Model Y lineup.
Unlike many competitors who were forced to follow price cuts, Tesla maintains full control over its pricing strategy. Tesla's Vice President of External Affairs, Tao Lin, stated that Tesla adheres to cost-based pricing. She emphasized that behind every price adjustment lies a vast number of engineering innovations. These include vehicle integration design, production line optimization, supply chain management, and even millisecond-level robotic coordination-forming what she described as a unique and optimal law of cost control.
Nonetheless, Tesla continues to face intense market competition. According to data from the China Passenger Car Association (CPCA), Tesla's wholesale sales in China reached 61,662 units in May, down 15% year-on-year, marking the eighth consecutive month of year-over-year sales decline.
