The electric vehicle sales battle is heating up once again in China, with Tesla confirming yet another price cut for its more premium models as it hopes to expand market share in the Red Dragon.
The announcement comes just days after Tesla cut prices for its high-volume seller, the Model Y in China, which saw 4.9% reductions for long-range variants and 3.8% reductions for performance variants.
Tesla took to Chinese social media platform, Weibo, to announce the news, stating that prospective customers interested in the Model S sedan and the Model X SUV stand to benefit from a 6.7% and 6.9% price cut, respectively.
Before the cut, prices for the Model X stood at 898,900 yuan – equivalent to $193,423 – which have now dropped to 836,900 yuan, around AUD $181,106.
The most recent price cut is one of a number of slashes across Tesla’s range in China, as the company attempts to get a solid footing in a market absolutely dominated by domestic giants like SAIC and BYD.
To win over buyers, Tesla is also offering Chinese customers an insurance subsidy valued at around USD $1000 for Model 3 buyers.
Tesla’s move to consistently slash prices in China comes as delivery numbers drop, as Chinese buyers look to domestic brands instead.
According to Reuters, sales of Tesla’s Chinese-made vehicles fell by 31% in a month between June and July, marking Tesla’s first month of declining sales since late 2022.
