Tesla Slashes Model 3 Long-Range Price in China Within Weeks of Launch

Tesla has announced a price cut for its newly introduced long-range rear-wheel-drive (RWD) Tesla Model 3 in China, reducing the cost by nearly 3.7% to 259,500 yuan (around US $36,300). What makes the move striking is the timing—the adjustment comes less than a month after the vehicle’s official launch in August. The long-range RWD variant was marketed as the most efficient Tesla Model 3 in the Chinese lineup, offering the longest driving range to date. By trimming nearly 10,000 yuan off the sticker price, Tesla has taken a decisive step to realign its sales strategy in the world’s largest electric vehicle market.

Strategy to Boost Demand

The decision to lower prices so soon highlights Tesla’s responsiveness to changing market conditions. China’s electric vehicle sector has become increasingly competitive, with local automakers rapidly releasing new models and aggressively pricing them to win over consumers. By offering a discount at this stage, Tesla is signaling a focus on volume growth rather than relying solely on premium positioning.

In a bid to maintain customer trust, the company has also applied the lower pricing to existing pending orders, ensuring that buyers who recently placed bookings benefit from the reduced rate. This proactive measure not only shields Tesla from potential backlash but also strengthens its customer-first reputation in a price-sensitive market.

Broader Market Implications

Tesla’s swift repricing move underscores the shifting dynamics of China’s EV industry. Domestic manufacturers such as BYD, Nio, and XPeng continue to gain traction with affordable offerings, forcing foreign players to adapt their strategies. For Tesla, the price cut represents more than just a short-term sales boost—it reflects a larger recalibration of how the brand competes in an environment where affordability, innovation, and customer trust are as critical as technology and brand image.

While the impact on Tesla Model 3 profit margins remains to be seen, the decision could help revive order momentum at a time when demand has shown signs of cooling. The aggressive strategy may also act as a defensive measure to safeguard Tesla’s market share against local rivals that have been steadily eroding its dominance.

In the long run, such pricing agility could become a hallmark of Tesla’s China playbook, demonstrating that the company is willing to sacrifice near-term margins to secure long-term positioning in one of its most vital global markets.