According to Reuters report on January 5th 2023, Tesla has delivered 55,796 China-made cars for December based on data from China Passenger Car Association (CPCA). This represents a decline of 44% from last month and down 21% year over year. China has decided to discontinue EV subsidies for 2023. The net effect is prices for EV went up. To compensate for losing EV subsides, Tesla has lower prices in China.
According to Gasgoo November 2022 China Passenger Vehicle Sales Analysis, Model Y is the best selling BEV SUV in China. It grew 188.5% YoY with 460,271 units up to November. The Model 3 in China ranked second with 266,187 as of November and growth of 9.7% YoY. In the BEV Passenger category, the Geely’s Zeekr 001 saw impressive growth to 64,396 units YTD for a 2817.8% growth.
https://autonews.gasgoo.com/m/70021975.html
According to China’s Tesla website, the Model 3 starts at Y 229,900 and Model 3 Performance starts at Y 329,900 . Current currency exchange rate is Y 6.84 to $1. That translate to $33,622 and $48,246. Model Y RWD starts at Y259,900, Model Y Long Range Y309,900, and Model Y Performance Y359,900 or $38,009, $45,321 and $52,633 in dollars respectively. For the base Model 3, the drop is about 13.5% and base Model Y the drop is 10%. Sawyer Merrit had a tweet with a screen shot of the ordering page before and after the price change at: https://twitter.com/SawyerMerritt/status/1611184353106616327
Tesla investor Gary Black tweeted a research report update about effect on Tesla’s earnings per share (EPS) impact from the price cut from Alexander Potter of Piper Sandler. Potter assumes if China’s volume to have same mix and fixed input cost, then impact of reduced prices is a decline of $-.70 in EPS. https://twitter.com/garyblack00/status/1611445512892194823
Reuters reports that some buyers were surprised by the big price cut and protest at Tesla stores. If the subsides were taken into consideration, the price drop is less drastic.