Tesla cuts prices in China yet again; Introduces a new Model 3 with longer range
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Tesla (NASDAQ:TSLA) dropped prices in the U.S. and China again, and unveiled a restyled, made-in-China Model 3 with a longer driving range.
TSLA is little changed before the open on Friday.
It marks the first time TSLA has introduced a new model in China. The new model is being built at TSLAâs Shanghai plant and comes with a starting price 12% higher than the previous base model. It will be exported to other markets in Asia, Europe and the Middle East, Reuters reported.
Meanwhile, the automaker cut the prices for its premium Model S and Model X by between about 14% and 21%, in China and the U.S.
âPrice cuts reflect further increase in discounts already in place on inventory; come ahead of likely Model 3 refresh and add to questions on whether 2Q will prove to be gross margin trough,â Barclays wrote in a note âWe see further discounts ahead amid push to drive volume higher. Reaffirms case for negative cons. â24 EPS revisions.â
Last month, TSLA dropped the prices for Model Y Long Range and Performance versions in China after data from the China Passenger Car Association indicated TSLAâs level of production was down 31% from June and was the lowest for 2023.
TSLA is up nearly 140% year-to-date.

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