Tesla announced this Friday a 10% price cut on the Tesla Model 3 in China. In order to be eligible again for the subsidies granted by the Chinese government, we talked to you about these recent measures in this article.
Tesla avoids a negative impact on this market
It’s a market specificity that Tesla couldn’t avoid. The new price of Tesla Model 3 will be 271,550 Yuan ($38,463), after deduction of state subsidies (20,250 Yuan or $2,867).
This premium announced in 2015 was supposed to end in 2020 but the Coronavirus crisis has had as a positive consequence, the extension of this premium until 2022.
Before this announcement, the brand had decided to increase the price of its Tesla Model 3 in this market but we were waiting for the reaction of Tesla marketing.
Other impacts to be expected?
Following this reaction after the application of these measures, we recall that the Chinese government also wishes to promote “Battery Swap” technology. This is a technology already deployed by NIO on the territory (domestic brand) and which Tesla had decided to abandon very soon after the opening of the first superchargers.
We are now curious as to whether Tesla will be re-launching this major program in China specifically and whether the Tesla’s currently sold are compatible with this technology. We could also ask ourselves whether this program will be relaunched worldwide, but for China, the probability remains higher.
It should be noted that at the time, Elon Musk did not give a reason for this decision, even though the technology was mature and seemed very promising. Perhaps the problem was related to the notion of ownership and the issues related to the capacity of the batteries, a subject that is so important for the second-hand market.