On April 21, CNMO learned that Tesla's official website in China showed that the prices of many of its models were significantly reduced. The starting price of the Model 3 has dropped to CNY 231,900, while the long-range version is CNY 271,900. The starting price of the Model Y has also dropped to CNY 249,900, while the long-range and high-performance versions are CNY 290,900 and CNY 354,900, respectively. The prices of the Model S and Model X were also lowered to 684,900 yuan and 724,900 yuan, respectively, while the high-end version of the PLAID was priced at 814,900 yuan and 824,900 yuan, respectively.
This price reduction is not accidental, and Tesla has frequently adjusted its prices in recent years to adapt to market changes and competitive dynamics. Not long ago, Tesla's U.S. market also adjusted the price of the Model Y, cutting the price of the entire model by $2,000 to $42,990.
However, Tesla's price strategy has not been consistent. At the beginning of this month, in the domestic auto market price reduction tide, Tesla China bucked the trend and announced a price increase of 5,000 yuan for the domestically produced Model Y. At the same time, some preferential policies are also about to expire, and the actual price increase may be as high as 23,000 yuan.
The price hike strategy doesn't seem to be last long. In less than a month, Tesla announced a price cut, which reflects the pressure on Tesla's sales growth and fierce competition in the global new energy vehicle market. Tesla is constantly adjusting its prices to find a market equilibrium in response to the intensifying price war.
It is worth mentioning that a few days ago, Musk posted in X that he was not optimistic about the economic situation, Tesla needs to lay off about 10% of its workforce, and will suspend global recruitment. Based on Tesla's current global workforce of 145,000, the total number of layoffs is 14,500, which is expected to be Tesla's largest layoff since 2017.