US electric-car giant Tesla has cut prices in China amid reduced demand, triggering protests from existing owners who took delivery of their vehicles before the discounts were applied.
Tesla has dropped the prices of its electric vehicles in China by up to 13 per cent, resulting in protests from owners who had already taken delivery of their cars and missed out on the discounts, according to overseas reports.
News agency Reuters has reported hundreds of Tesla owners have gathered at the electric-car giant’s stores in China to voice their anger at the price cuts which were announced late last week.
Customers in China who have ordered a Tesla can have their final purchase price changed at any time up until the full amount is paid, but past then the cost is locked in.
The groups who have been protesting at Tesla stores reportedly paid for their cars at the previous rate in the weeks leading up to the price changes.
Disgruntled owners who spoke to Reuters said they had taken delivery of their Tesla cars in late 2022, believing prices would not fall after government rebates were withdrawn at the start of 2023.
On 1 January 2023, the Chinese government stopped offering new electric-car buyers a CNY10,000 ($AU2125) rebate, wrapping up the scheme which was originally intended to end in 2020 but was extended due to the COVID-19 pandemic.
According to Tesla’s Chinese website, the Model 3 ‘Standard Range’ electric sedan’s price has been cut by 13.5 per cent, falling from CNY265,900 ($AU56,500) to CNY229,900 ($AU48,850) – a reduction of CNY36,000 ($AU7650).
Pricing for the Model Y ‘Long Range’ has also been reduced by more than 13 per cent, with Tesla cutting CNY48,000 ($AU10,200) from its previous CNY357,900 ($AU76,000) list price, now starting from CNY309,900 ($AU65,850).
The discounts have also been applied to the Tesla Model 3 ‘Performance’ (CNY349,900/$AU74,350 to CNY329,900/$AU70,100), the Model Y ‘Standard Range’ (CNY288,900/$AU61,400 to CNY259,900/$AU55,200) and the Model Y ‘Performance’ (CNY397,900/$AU84,500 to CNY359,900/$AU76,500).
Industry analysts told Reuters Tesla’s latest price cuts are intended to boost sales amid reduced demand in China.
In December 2022, data from the China Passenger Car Association (CPCA) showed Tesla reported 21 per cent fewer sales of its electric cars compared to the same month a year prior.
The reduced demand for Tesla’s electric cars has led to shortened wait times in China, with the company’s website estimating deliveries are now taking between one and four weeks.
Tesla buyers in Australia are facing wait times between one and four months depending on the model and options.
Last week, Tesla trimmed the Australian prices of the Model 3 sedan and Model Y SUV by between $1600 and $3907 depending on the model, although it increased its delivery fee to $1400 and the ordering fee to $400.
The entry-level Tesla Model 3 – the car-maker’s cheapest vehicle in Australia – has reverted to its March 2022 price of $63,900 plus on-road costs, down from the $65,500 list price which was introduced in June 2022.
The rear-wheel-drive Model Y has also gone back to its launch price of $68,900 plus on-road costs, following a $3400 increase one week after local arrivals began in June 2022.
The post Tesla owners in China protest after missing out on price cuts appeared first on Drive.
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