Tesla has cut prices for the Model 3 and Model Y in China yet again in a move that could trigger a new wave of discounts for EVs across the country.
The car manufacturer took to Weibo on Sunday evening to reveal that prices of both the Model Y Long Range and Model Y Performance have been cut by 14,000 yuan ($1,934). The cuts mean that the price of a Model Y Long Range has dropped by 4.5% to 299,900 yuan ($41,100) while the Model Y Performance is now available from 349,900 yuan ($47,952), representing a 3.8% cut.
The Model 3 sedan hasn’t been neglected either. Local customers looking to pick up the keys (or keycard) for the entry-level, rear-wheel drive Model 3 can receive an 8,000-yuan ($1,098) insurance subsidy. To be eligible, the car purchased must already be in Tesla’s inventory and the offer is only valid until September 30.
CNBC reports that news of the cuts prompted Tesla’s shares to slide by as much as 3%.
Elon Musk has previously said that the carmaker would consider further price cuts despite the threat of them squeezing its margins. Evercore ISI analyst Chris McNally told Auto News there’s a potential these cuts in China may also trigger similar cuts in the United States and Europe.
Read: Angry Tesla Owners In China Blow A Fuse About Discounts They Missed
Tesla’s most recent earnings report revealed that it generated $24.93 billion in revenue in the second quarter of the year. Musk hopes that the company will deliver 1.8 million vehicles this year but noted that production in Q3 will be down slightly due to planned summer shutdowns as it upgrades its factories. Tesla produced 479,700 vehicles in Q2 and delivered 466,140 vehicles. These figures were slightly higher than many analysts had expected and were driven in part by incentives and discounts.
