Tesla Slashes Model 3 and Model Y Prices in China for Second Time in 3 Months

This is the second time in three months that Tesla cut down the car prices of Model 3 and Y. It was cut by 6%-13.5%, according to the calculations by Reuter based on the website.

At first the price was 265,900 yuan and now it has been cut to 229,900 yuan ($33,427).

The deliveries of Tesla in December fell down to 55,796, which was the lowest in five months, as they had to deal with their rising inventories, which resulted in the company lowering output. Meanwhile, Beijing had ended its incentive program for the electric vehicle market by canceling the subsidy program, which made Tesla and its rivals have to accept it to go on with their sales.

The U.S. electric vehicle maker is facing heavy competition with BYD in China. BYD is the biggest electric vehicles company, while having a variety of options for customers. In December, its retail sales in China were double while Tesla fell 42%.

Tesla Model 3 and Model Y have a lower price than the United States by 24% – 32% and they planned to sell Model S Plaid and Model X Plaid the high end models in China, which would be subjected to China’s 15% tariff, in the first half of the year.