By ZHANG Mingrui
Tesla has lowered prices for its Model 3 and Model Y cars by up to 9 percent in China, less than a month after denying rumors of imminent price cuts. The backtracking has caused widespread complaints among recent buyers. Some protested in front of Tesla stores, asking for refunds.
Tesla has increased prices in China six times this year. But the company said in its Q3 disclosure that its “cost reduction efforts and additional localized procurement and manufacturing” have allowed it to “competitively price” its cars in China.
In September, some buyers were offered an 8000-yuan insurance rebate, which led to speculation of more substantial markdowns to come. The company issued a statement on September 30 denying the rumor.
A salesperson from a Tesla dealership in Beijing said she hadn’t received any refund requests, and that those who have placed orders but not paid are entitled to the new prices. Lawyers say recent buyers may seek mediation and could be compensated.
Raw material costs have risen sharply since the pandemic. The price of lithium carbonate, a key ingredient for car batteries, reached a historic high in Shanghai this week. At least 17 EV makers have increased prices this year.
Tesla’s price cuts may pressure its competitors to follow suit despite rising costs. Large domestic EV makers have refrained from commenting so far.
