Tesla China Denies Price Reduction Rumors for China-Made Model 3
Some Chinese web users recently claimed that Tesla would lower the terminal price of its entry-level models, reducing the China-made Model 3 with a rear-wheel drive battery life of 556 km from its current price of 279,900 yuan to 219,900 yuan ($41,683 to $32,752). Tesla China denied the news.
The Tesla Model 3 is now on sale for 279,900 yuan and 367,900 yuan, and the NEDC cruising range of entry-level models is 556 km. Many auto manufacturers recently raised prices because of rising costs of batteries and raw materials, with no end in sight.
Tesla is mainly producing vehicles for the Chinese market at its Shanghai Gigafactory. China Business Journal reported on Monday that Tesla had said since its Shanghai Gigafactory resumed work following extended lockdowns in the city, it produced more than 40,000 complete vehicles, and the capacity utilization rate had recovered to 100%.
SEE ALSO: Tesla’s Shanghai Gigafactory Restores Full Production
According to data released by the China Passenger Car Association on June 9, Tesla’s wholesale sales volume in May was 32,165 vehicles. Specifically, 22,340 were exported, and the speed of resuming work and production accelerated. From January to May 2022, Tesla delivered 215,851 vehicles, up by more than 50% year-on-year.
Meanwhile, Tesla’s United States website showed Thursday that the company had raised the prices of some models by up to $6,000, with only the Model 3, Model S Plaid and Model X Plaid models remaining unchanged.
Tesla recently started a plan to lay off 10 percent of its salaried employees, and a number of laid-off employees have confirmed their dismissal on LinkedIn, including some who have worked at the company for years. According to a report by Jiemian News in early June, a source close to Tesla China revealed said that “Tesla China is very strict with recruitment on its side, and there is still a shortage of talent.”