Tesla car price: Model Y ₹1.5 lakh cheaper now; Elon Musk's company declares discounts after sales drop in China

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₹1.5 lakh) for its upper-tier Model Y variants within China. Announced via the company's official Weibo account, Tesla's adjustments bring down the prices of its Model Y Long-Range and Performance versions to 299,900 yuan ( ₹34 lakh) and 349,900 yuan ( ₹40 lakh) respectively, Bloomberg reported. The Model Y is a pivotal component of Tesla's vehicle portfolio, sharing the spotlight alongside the popular Model 3 as the cornerstones of CEO Elon Musk's automotive enterprise.

Tesla has also revealed its plans to provide insurance subsidies for Model 3 buyers in China. These subsidies, amounting to 8,000 yuan ( ₹91,000, will be extended to purchasers of entry-level, rear-wheel-drive versions of the Model 3 inventory vehicle. This offering is scheduled to be available from August 14 to September 30, Reuters reported.

Musk earlier expressed the potential for further reductions in prices, even if it meant putting pressure on the company's profit margins. Tesla's strategy of price adjustments has been consistently evident across various markets, including the United States and China, since the latter part of the previous year. This approach has entailed not only price cuts but also enhanced discounts and other incentives.

These maneuvers have been undertaken to effectively manage inventory, counter competitive pressures, and navigate the uncertainties prevailing within the economic landscape. The impact of these tactics has been noticeable, especially in the context of Tesla's China-made vehicles. Recent data provided by the China Passenger Car Association (CPCA) highlighted a decline of 31% in the sales of these vehicles during July, when compared to the previous month of June.