Tesla Model 3 Price Cuts in China Causes In-Store Chaos

Tesla last Thursday lowered the price of the Model 3 Standard Range Plus RWD manufactured in China by 8%, now going to cost $36,800 to change (including the corresponding subsidies granted by the Chinese government).

This reduction has been possible, among other things, thanks to the use of new LFP (and therefore cobalt-free) batteries of CATL origin, which are notably cheaper than the LG Chem NCMs used so far in the access model. (This type of cell is still used in the Chinese Model 3 Long Range RWD, which curiously has also seen its price drop from $39,990, a reduction of 10% that, in this case, is not explained by the use of different chemistry in batteries).

According to various sources, after this price reduction, the Tesla Store in China was filled with customers, even collapsing due to the huge number of orders. At the moment, the exact figures are unknown, but the already good sales of the Model 3 will likely improve even more in the fourth quarter of the year.

During August, Tesla sold just over 11,000 cars in China, making the Asian country one of the Californian firm’s bastions. The company is currently expanding its facilities in Giga Shanghai to host the production of the Model Y next year, an SUV that will likely outsell the Model 3 itself over time.

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