Tesla responds to ‘domestic Model 3 price cut’: No compensation for older owners this time

According to Tesla’s official announcement today, from now on, the basic price of the China-made Model 3 standard battery life upgrade will be adjusted to 291,800 yuan, according to this base price calculation, after the subsidy price of 271,550 yuan. Of course, the price reduction is also a certain background, according to the previous four ministries jointly issued “on the improvement of new energy vehicles to promote the application of financial subsidies policy notice”, the new energy passenger car subsidy before the sale price must be less than 300,000 yuan (including 300,000 yuan).

Tesla responds to 'domestic Model 3 price cut': No compensation for older owners this time

In response to a reporter’s question about subsidies and compensation for older owners, Tesla’s global vice president, Dolin, said Tesla would not pay compensation for the price cuts.

Tao Lin says all car owners are treated equally, even if employees don’t get discounts. This is determined by our pricing strategy – the margin is small, giving some people discounts or subsidies, which means letting others pay.

In response to the localization rate, model 3 prices will still be explored, Tao Lin said that the domestic parts supply is not high enough, the run-in also has a process. All components are required to meet the required standards and all aspects of the vehicle’s performance are not affected by changes in component suppliers such as batteries. Therefore, the increase of the rate of localization does not represent the price reduction, it represents the improvement of factory efficiency.