On July 1, Tesla announced major product upgrades for the long-range versions of the Model 3 and Model Y.
According to Tesla China’s website, three versions of the Model 3 are currently available: rear-wheel drive, long-range all-wheel drive, and performance all-wheel drive, priced at RMB 235,500, RMB 285,500, and RMB 339,500, respectively. The Model 3 long-range AWD has seen its CLTC range increase from 713 km to 753 km (+40 km), while acceleration improved to 3.8 seconds (0–100 km/h). Its price has been raised to RMB 285,500, RMB 10,000 higher than the previous RMB 275,500. Prices for the rear-wheel drive and performance AWD versions remain unchanged.
The Model Y long-range AWD, on the other hand, adopts a “more for the same price” strategy: range has increased from 719 km to 750 km (+31 km), while the price remains at RMB 313,500. The rear-wheel drive version is still priced at RMB 263,500.
Tesla China also announced multiple incentives available for orders placed before July 31. Buyers of the Model 3 can enjoy an RMB 8,000 limited-time insurance subsidy, 5-year interest-free financing, an RMB 8,000 paint option credit, and exclusive charging benefits. For the Model Y, incentives include 5-year interest-free financing, the paint option credit, and charging benefits.
This is not Tesla’s first price increase this year. In March, Tesla China raised the price of the refreshed Model Y long-range AWD by RMB 10,000, while keeping the rear-wheel drive version unchanged. Current delivery times are 1–3 weeks for the Model 3 rear-wheel drive and long-range AWD, 8–10 weeks for the performance AWD, and 1–3 weeks for the Model Y long-range AWD and rear-wheel drive.
Retail data shows Tesla China sold 201,926 vehicles from January to May 2024, including 126,643 Model Ys and 75,283 Model 3s. Analysts attribute the relatively weak Model Y sales to the model’s facelift cycle, with new competitors in China putting additional pressure on Tesla’s lineup.
Competition has intensified following the June 26 launch of Xiaomi’s first SUV, the YU7, priced from RMB 253,500 to RMB 329,900 across three trims (Standard, Pro, and Max) and three powertrain configurations (single-motor RWD, dual-motor AWD, and dual-motor high-performance AWD). The YU7 quickly became a hit, securing over 200,000 firm orders within 3 minutes and 240,000 locked orders within 18 hours. Xiaomi founder Lei Jun described the Model Y as an “epic masterpiece” and global sales champion but vowed that the YU7 would challenge it head-on.
As Tesla’s core models, the Model 3 and Model Y are now facing heightened competition. Whether Tesla’s latest upgrades and policies will attract more buyers remains to be seen.
