Tesla is cutting prices across its entire lineup in China

The prices of the domestically produced Model 3 and Model Y have been reduced by around 4-6 percent, while the imported Model S and Model X have been reduced by up to 22 percent.

(Photo credit: CnEVPost)

Tesla (NASDAQ: TSLA ) has cut prices for all its models in China, amid growing competition.

Domestically produced Model 3 and Model Y prices were cut by around 4-6 percent, while imported Model S and Model X were cut by up to 22 percent.

Tesla has a factory in Shanghai that produces the Model 3 and Model Y. The Model S and Model X are not made in China and are sold here through imports.

The Model 3 is offered in two trims in China, the Model Y in three, and both see a RMB 14,000 price drop.

The latest starting price for the top-of-the-line Model 3 hatchback is RMB 231,900 ($32,030), down RMB 14,000, or 5.69 percent, from the previous RMB 245,900.

The latest starting price for the Model 3 Long Range is RMB 271,900, down RMB 14,000, or 4.9 percent, from RMB 285,900.

The standard rear-wheel drive Model Y has a new starting price of RMB 249,900, a reduction of RMB 14,000, or 5.31 percent, from RMB 263,900.

Model Y Long Range has a new starting price of RMB 290,900, down RMB 14,000, or 4.59 percent, from RMB 304,900.

The Model Y Performance has a new starting price of RMB 354,900, a reduction of RMB 14,000, or 3.8 percent, from RMB 368,900.

Both the Model S and Model X are available in China in standard versions and the more expensive Plaid version.

The latest starting price for the regular Model S is RMB 684,900, a reduction of RMB 124,000, or 15.33 percent, from RMB 808,900.

The latest starting price for the Model S Plaid is RMB 814,900, down RMB 214,000, or 20.8 percent, from RMB 1,028,900.

The standard Model X starts at RMB 724,900, down RMB 174,000, or 19.36 percent, from RMB 898,900.

The latest starting price for Model X Plaid is RMB 824,900, down RMB 234,000, or 22.1 percent, from RMB 1,058,900 previously.

Notably, Tesla recently cut the prices of the Model Y, Model S, and Model X by $2,000 in the US, but there were no changes to the Model 3 or Cybertruck.

The EV maker delivered 386,810 vehicles worldwide in the first quarter, down 8.53 percent year-on-year and down 20.16 percent from the fourth quarter of 2023, according to figures announced on April 2.

That’s the first time since the second quarter of 2020 that Tesla’s global deliveries have declined year-over-year, and below analysts’ estimates of 449,080 vehicles.

The company sold 132,420 units in China — its second-largest market after the United States — in the first quarter, accounting for 34.23 percent of global sales, according to data compiled by CnEVPost. That is a decrease of 3.64 percent year-on-year and 22.08 percent from the fourth quarter of 2023.

In March, Tesla sold 62,398 vehicles in China, up 107.02 percent from 30,141 in February, though down 18.61 percent from 76,663 a year earlier.

Its Shanghai plant shipped 26,666 vehicles in March, down 11.77 percent from 30,224 in February and 118.47 percent from 12,206 in the same month last year.

The first model to be produced at Tesla’s Shanghai factory is the Model 3, and deliveries will begin in January 2020. Deliveries of the locally produced Model Y begin a year later, in January 2021.

The Model Y is one of the best-selling models in China, with monthly sales exceeding even many traditional gasoline cars. And after the introduction of the domestically produced Model Y began, deliveries of the Model 3 slowed significantly.

For the full year 2023, the Model Y sold 456,394 units in China, accounting for 75.6 percent of Tesla’s full-year sales of 603,664 units in China, according to data compiled by CnEVPost.

The Model 3 sold 147,270 units in China in 2023, accounting for 24.4 percent of Tesla’s annual sales in China.

With the rapid development of the EV industry in China in the past few years, the Model 3 and Model Y are facing an increasing number of competitors.

Smartphone giant Xiaomi (HKG: 1810 , OTCMKTS: XIACY ) officially unveiled its first EV model, the SU7, on March 28, the latest in a series of lower-priced Model 3 competitors.

The Model Y still sells well in China, but the arrival of more and more competition is threatening its dominance of the crossover segment.

Nio’s (NYSE: NIO ) Onvo sub-brand, dubbed Alps, will launch its first model later this year.

Onvo’s first model will compete directly with the Model Y, and the BOM (bill of materials) will cost about 10 percent cheaper, the Chinese EV maker previously said.

Tesla began laying off 10 percent of its global workforce earlier this month, and the Chinese team has been affected.

($1 = RMB 7.2404)

Data tracker: Tesla China price changes