Tesla China Drops Price on New Model 3 Long Range RWD

On September 1, Tesla reduced the price of the rear-wheel-drive version of its longer-range Model 3 in China, less than a month after its initial release.

The price of the Model 3 Long Range RWD, introduced on August 12, has decreased from CNY269,500 to CNY259,500 today (USD36,390 from USD37,795), as listed on Tesla’s Chinese website.

This Model 3 variant boasts a range of 830 kilometers based on the China Automotive Test Cycle, making it Tesla’s longest-range vehicle. In its first week on sale, the company sold 5,200 units, ranking eighth in the country, though it dropped out of the top 30 in the second week.

Sales in China are primarily driven by the Model Y, which sold 177,000 units over the past six months and ranked third among all vehicles. In comparison, the Model 3 sales reached only 94,000 units, placing it 18th overall.

The Chinese market presents intense competition, with Tesla’s sales declining 6.3 percent to 304,000 units in the first seven months of the year compared to the previous year. This drop marks the largest decrease among the top 10 new energy vehicle manufacturers, according to data from the China Passenger Car Association. Meanwhile, the combined sales of the top 10 carmakers grew by 34 percent.

Tesla’s decline isn’t confined to China. Globally, its deliveries in the first half of the year fell 13 percent to 720,800 units, marking the second consecutive quarter of double-digit drops.

Additionally, electric vehicle sales within the European Union surged by 39 percent in July compared to the previous year, yet Tesla’s sales decreased from 11,465 units to 6,600 units, marking the seventh consecutive month of decline, according to data from the European Automobile Manufacturers Association.