Tesla’s official Chinese website on Thursday officially unveiled a new Model Y Standard Range electric vehicle, featuring a price tag of 276,000 yuan and a cruising range of 525 kilometers.
According to official data, this model can accelerate to 100 kph in 5.6 seconds and tops out at a maximum speed of 217 kph.
With the Thursday launch, Tesla lowered the price of its entry-level Model Y to less than 300,000 yuan, a drop of more than 70,000 yuan from the previous level. The reductions in cost were enabled in part by the battery adopted in the Model Y Standard Range design, which is a cheaper lithium iron phosphate variety. Tesla Sales told Auto-Time Daily that the Model Y Standard Range’s batteries are produced by Contemporary Amperex Technology Co., Limited (CATL). In possible reaction to the news, CATL’s share price rose 3.07% to close at 559.16 yuan on July 8, with a total market value of 1.3 trillion yuan.
Tesla’s official website shows that the price of 276,000 yuan is the subsidized rate, obtained by deducting the estimated subsidy amount for new energy vehicles from the original price of 291,840 yuan. Under current policy, if the original price of a vehicle runs higher than 300,000 yuan, the subsidies for energy vehicles is unavailable.
The new Tesla model is currently accepting orders, and is expected to carry out delivery in August. Following the announcement, consumers flocked to Tesla’s official website, resulting in a minor crash of the official website, while many consumers reported that they could not submit orders. Now, people wishing to purchase the new model face a race against time – placing an order one hour later may result in an additional month’s wait.
With this release of the Standard Range version, the domestic Model Y now comes in three versions: the Standard Range, the Dual Motor Long Range and the Performance, whose entry-level versions cost 276,000 yuan, 347,900 yuan and 377,900 yuan, respectively.
Even though Tesla has grappled with negative press in the wake of alleged braking failures, the CPCA found that the sales volume for the domestic Model Y (12,700 vehicles) exceeded that of the Model 3 (9,208 vehicles) in May. The Model Y sales amounted to 11,600 vehicles in June, remaining over the threshold of 10,000 vehicles.
According to the CPCA, Tesla’s wholesale transactions reached 33,000 vehicles in June, up 122% year-on-year and more than the total sales volume of its rivals NIO, XPeng and Li Auto, which sold 8,083, 6,565 and 7,713 vehicles in June, respectively.
The price reduction may in turn impact the sales of Tesla’s rivals in the Chinese market.