Tesla Discounts Model Y Vehicles in China

Tesla continues to adjust its pricing strategy in China, announcing discounts on selected variations of its Model Y vehicles. This move comes as the electric carmaker faces increased competition from local rivals such as BYD and grapples with uncertain demand for electric vehicles in the world's second-largest economy.

On Thursday, Tesla's official Weibo account revealed that it will be offering a cash discount of 8,000 yuan ($1,127) on certain configurations of the Model Y in China. The base model of the Model Y is currently listed at CNY258,900 on Tesla's China website.

It is important to note that the discounted cars are limited in quantity and will be available only until supplies last. However, Tesla did not specify which specific variations of the Model Y will be eligible for the discount.

Tesla has been striving to make its vehicles more affordable in China amid a dip in its market share and increasing competition from local players like BYD, Li Auto, Nio, and XPeng. In recent months, the company has implemented multiple price reductions, with the most recent one occurring earlier in January.

This latest move by Tesla comes after it was dethroned by BYD as the world's largest electric vehicle manufacturer, following fewer deliveries compared to its Chinese competitor in the final quarter of 2023.