Tesla trims prices of some Model Y versions in China
Brandon Bell/Getty Images News
Tesla (NASDAQ:TSLA) has dropped the prices for Model Y Long Range and Performance versions in China amid the ongoing electric vehicle price war, according to the company's official Weibo account.
The starting prices for both models were cut by CNY 14K (~$1,932) each, with the Model Y long-range's price down 4.5% to CNY 299.9K (~$41,486) and the Model Y Performance's price down 3.8% to CNY 349.9K (~$48,295).
The EV giant will also offer insurance subsidies of CNY 8K (~$1,104) in China for buyers of Model 3 entry-level and rear-wheel-drive versions in inventory between August 14 and September 30.
Tesla (TSLA) has cut prices several times since last year amid raging competition and economic uncertainty that has hit sales. The automaker's China-made EV sales fell 31% M/M in July, marking the lowest level for 2023.
Last month, CEO Elon Musk had warned that further cuts could be expected if market conditions become unstable. Bank of America's John Murphy pointed out that Tesla's (TSLA) price cuts have created a "negative price spiral" that has already adversely impacted margins.

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