On July 1, Tesla announced significant product upgrades for the long-range versions of the Model 3 and Model Y. According to Tesla China’s website, the current Model 3 lineup includes three versions: rear-wheel drive, long-range all-wheel drive, and high-performance all-wheel drive, with prices of 235,500 CNY, 285,500 CNY, and 339,500 CNY, respectively. The Model 3 long-range all-wheel drive version’s CLTC range has been increased from 713 km to 753 km, an improvement of 40 km. The 0-100 km/h acceleration time has also been upgraded to 3.8 seconds. The price has risen by 10,000 CNY to 285,500 CNY, up from the previous starting price of 275,500 CNY. The prices for the rear-wheel drive and high-performance all-wheel drive versions of the Model 3 remain unchanged.
The Model Y long-range version, however, follows a “more for the same price” strategy. The CLTC range of the Model Y long-range all-wheel drive version has been increased from 719 km to 750 km, an increase of 31 km, but the price remains the same at 313,500 CNY. The rear-wheel drive version is priced at 263,500 CNY.
Additionally, Tesla China announced that customers who order the Model 3 before July 31 will receive multiple benefits, including an 8,000 CNY limited-time insurance subsidy, 5-year 0% interest financing, 8,000 CNY in paint upgrade credits, and exclusive charging benefits. Customers who order the Model Y before July 31 will also receive similar benefits, excluding the insurance subsidy.
It’s worth noting that this is not Tesla’s first price increase this year. In March, Tesla China officially announced a price adjustment for the updated Model Y, with the long-range version increasing by 10,000 CNY to 313,500 CNY, while the price of the rear-wheel drive version remained the same at 263,500 CNY. According to the website, the current delivery dates for the Model 3 rear-wheel drive and long-range all-wheel drive versions are 1 to 3 weeks, while the high-performance all-wheel drive version has a delivery date of 8-10 weeks. The Model Y long-range all-wheel drive and rear-wheel drive versions are both expected to be delivered within 1 to 3 weeks.
Retail data shows that Tesla China sold 201,926 vehicles from January to May this year, with the Model Y accounting for 126,643 units and the Model 3 for 75,283 units. The market believes that the slow sales of the Model Y are mainly due to the recent facelift, which upgraded the appearance, interior design, and features. Industry insiders believe that the slow pace of model updates has become a bottleneck for Tesla’s development, especially with the increasing pressure from local Chinese automakers launching new models, which presents a significant challenge for Tesla, whose product lineup is relatively simple and whose update pace is slower.
On June 26, Xiaomi’s first SUV, the Xiaomi YU7, was launched. The new car comes in three versions: Standard, Pro, and Max, priced at 253,500 CNY, 279,900 CNY, and 329,900 CNY, respectively. It offers three powertrain options: single-motor rear-wheel drive, dual-motor all-wheel drive, and dual-motor high-performance all-wheel drive. The strongest competitor to the Model Y in the market is now the Xiaomi YU7. Lei Jun, the founder of Xiaomi, had previously explained, “Model Y is widely regarded as an ‘epic masterpiece,’ consistently ranking as the best-selling vehicle globally for several years, beating one challenger after another. It’s extremely impressive! But we still set an ‘outrageous’ goal: Xiaomi YU7 aims to challenge Model Y!” In terms of product strength, I’m particularly confident.” According to Xiaomi’s official account, the pre-orders for the Xiaomi YU7 soared after its release. Within 3 minutes of its launch, pre-orders exceeded 200,000 units, and within an hour, they surpassed 289,000 units. In 18 hours, the total pre-order volume reached over 240,000 units. The launch of the Xiaomi YU7 has made it a hot-seller, creating even more intense market competition for the Model Y.
As Tesla’s top-selling models, the Model 3 and Model Y, it remains to be seen whether Tesla’s new policy in China will attract more consumers’ attention.
