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Tesla China And US Pricing Difference Widens Further: Model 3, Y EVs Now Up To 32% Cheaper In Asian Country

Benzinga · 01/06/2023 13:00

Tesla Inc. (NASDAQ:TSLA) announced a fresh round of price cuts in China and the latest salvo has created a wide differential between the pricing in the country and the U.S.

What Happened: The price changes on Tesla China’s website points to price reductions in the range of 5.7%-13.5%.

Here’s how much each of the vehicle models and their variants is priced in China and the U.S. currently:

Model 3

  • Rear Wheel Drive, or RWD, Model 3: 229,900 yuan ($33,523) Vs. $46,990, before potential savings (-28.67%)
  • Model 3 Performance: 329,900 yuan ($48,097) Vs. $62,990 (-23.64%)

See Also: Best China Stocks

Model Y

  • Model Y RWD: 259,900 yuan (this model is not on sale in the U.S.)
  • Model Y dual-motor, all-wheel drive, or AWD, Long Range Edition: 309,900 yuan ($45,174) Vs. $65,990 (-31.54%)
  • Model Y AWD Performance: 359,900 yuan ($52,458) Vs. $69,990 (-25.05%)

Model S

  • Model S dual-motor AWD: 789,900 yuan ($115,117) Vs. $104,990
  • Model S Plaid Edition:1.01 million yuan ($147,194) Vs. $135,990

Model X

  • Model X dual-motor AWD model: 879,900 yuan ($128,223) Vs. $120,990
  • Model X Plaid Edition: 1.04 million yuan ($151,568) Vs. $138,990

Benzinga’s Take: The price cuts of Tesla’s cheapest models — Model Y and Model 3 — will likely help the company compete better with the competitively priced models of domestic upstarts such as BYD Manufacturing Company Limited (OTC:BYDDY) (OTC:BYDDY), XPeng Inc. (NYSE:XPEV) and others.

The company can, to some extent, justify the price differentials between the U.S. and China as the Made-In-China cars have higher margins. The Model S and X production is not done locally, which explains the premium pricing over the corresponding vehicles in the U.S.

Price Action: Tesla closed Thursday’s session at $110.34, down 2.90, according to Benzinga Pro data.

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