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Tesla Promotes China's Economic Development by Reducing Model 3 & Y Prices There via Engineering Innovations

Tesla Promotes China's Economic Development by Reducing Model 3 & Y Prices There via Engineering Innovations

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Tesla contributes to the economic development of China in a difficult environment. To do this, the company is cutting prices on Model 3 and Y in the country, which is possible thanks to its engineering innovations applied to the production of cars.

Tesla has slashed the prices of its Model 3 and Model Y, manufactured at Giga Shanghai, in several markets in the Asian region, including China, Australia, New Zealand, Japan, and South Korea. Prices have become very attractive indeed, as they have, in some cases, dropped to their lowest ever levels. Foreign media hastened to inflate this as negative news while ignoring the context and message of the Vice President of Tesla Global Grace Tao.

In a post on Weibo, Tao released updated car prices in China. Model 3 starts at RMB 229,900 (about $33,595), while Model Y starts at RMB 259,900 (about $37,980). The post also included information that the company is responding to the country's call for practical action to promote economic development and release consumer potential in 2023, which will be especially relevant this year due to the difficult economic situation.

Tao also explained that Tesla is able to drive down prices due to the company's innumerable engineering innovations in the production of vehicles, which are essentially unique and superior laws of cost control. This includes improvements in vehicle design, production line design, supply chain management, and optimization at every level. In fact, Giga Shanghai has been able to increase the number of vehicles produced while reducing production costs and maintaining high margins.

“Behind Tesla's price adjustments, there are countless engineering innovations, which are essentially unique and excellent laws of cost control: including but not limited to vehicle integration design, production line design, supply chain management, and even millisecond-level optimization of robotic arm coordination Route... Start from ‘first principles’ and insist on cost pricing. Respond to the country's call with practical actions to promote economic development and release consumption potential. In 2023, let's welcome a better life together.”

Keep in mind that along with the price cut in China, Tesla also canceled the temporary subsidy that was introduced last week. It was in line with the national exemption for the purchase of NEVs, which ended on December 31, 2022, and made it possible to reduce the cost of the car by RMB 10,000 (about $1,460). This subsidy was supposed to end on February 8, 2023, but due to Tesla's pricing review, the benefit was canceled on January 6, 2023.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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Article edited by @SmokeyShorts; follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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