Tesla: in China, the discontent of the owners of Model Y and Model 3 against the drop in prices

After inflation, deflation. In China, Tesla is angering new Model Y and Model 3 owners after it voluntarily lowered the entry price of these flagship models earlier this year. Protesters gathered in concessions in several major cities across the country on Saturday, January 7, reports Reuters.

Reduction of 13 to 24%

Tesla has, in fact, decided to apply a reduction of around 13 to 24% on cars marketed in China last Friday. In detail, the Model 3 and the Model Y are now displayed at 229,900 RMB (31,627 €) and 259,900 RMB (35,755 €) respectively. A new reduction after the one already practiced in October 2022, which exasperates the new owners. The latter consider themselves wronged by the manufacturer because of the depreciation of the value of their newly acquired vehicle. Many buyers did not expect such a sudden drop in prices. On social networks, many videos show the extent of the mobilization in brand stores across the country. Locally, the police forces had to intervene to disperse the crowd.

“A Tesla salesman told me they were planning to raise prices in the second half of 2022, so I rushed to place an order. I feel like I’m being lied to. By cutting prices every time, Tesla is lowering its prestige as a premium electric vehicle brand“, denounces the owner of a Model 3, questioned by the FinancialTimes. In Wuhan, many protesters gathered outside a Tesla distribution center on Sunday. Many slogans such as “Tesla lied to customers” Where “Protect the legal rights of consumers” would have been chanted in front of the establishment.

A rather rare protest movement in China, which demonstrates the extent of the discontent of new owners of Tesla vehicles.

Boost sales by lowering prices

The company’s new pricing policy comes amid a bearish backdrop for electric vehicles in China. In addition, Tesla’s direct competitors, such as BYD and Li Auto, are chipping away at market share every month. A decline that the American manufacturer wishes to reverse by reducing the call price of the Model Y and Model 3. A way of rebalancing the fragile balance between supply and demand.

For her part, Grace Tao, vice president of Tesla in charge of external affairs, justifies the new price reduction by “technical innovation” on both models. And to add:We’re answering the nation’s call to boost economic growth and unlock consumption potential.”

For the time being, Tesla does not intend to compensate buyers who ordered their vehicle before the new pricing policy, a spokesman for the group told Reuters.