Tesla raised the China price of its new Model Y Long Range by RMB 10,000 ($1,380) to RMB 313,500 on Tuesday local time. But that may not reflect strong demand. Meanwhile, Tesla China EV registrations picked up along with most other electric car makers in China. Tesla stock fell solidly early Tuesday, extending a big sell-off.
First, Tesla kept the price for the entry-level Model Y Rear Wheel Drive unchanged at RMB 263,500. The vast majority of Model Y sales in China are the RWD variant. The Tesla's Long Range price hike could be an effort to spur undecided consumers to make a purchase vs. a reflection of exceptional demand.
Second, Tesla introduced 0% three-year loans and low-rate five-year loans. That will at least offset the Model Y LR price hike and provide a de facto price cut for the more-popular RWD variant.
Third, the wait time for the Model Y Long Range is six-10 weeks in China, but just two-four weeks for the RWD.
Late last week, multiple reports suggested that Tesla's upcoming "affordable" EV will be a stripped-down Model Y to lower costs and thus the price.
The refreshed Model Y has a brief window before a wave of new and updated China EVs roll out in the next few months, with the Xiaomi Yu7 crossover expected to launch this summer. Handset-maker Xiaomi's first EV, the SU7 sedan, is already outselling the Tesla Model 3 in China despite being capacity constrained.
Tesla EV Registrations
Chinese insurance registrations reveal some 15,300 Tesla EVs were registered in the week ended March 16, up 10.9%. Model Y registrations climbed 8.6% to 9,451.
Many China EV makers, but not all, had week-to-week increases in registrations. Deliveries tend to pick up at the end of quarters, while demand is normalizing China New Year slowdowns earlier in the year.
Tesla Price Target Cut
RBC Capital Markets on Tuesday slashed its TSLA price target to 320 from 440, citing reduced expectations for its full self-driving software business.
On Monday, Tesla offered Chinese owners one free month of Full Self-Drive to try to spur demand. The EV giant has used this offer multiple times in the U.S. Tesla FSD costs RMB 64,000 ($8,850) in China, while BYD and XPeng offer similar Level 2 driver-assist software for free.
Tesla Stock
Tesla stock fell 5.3% to 225.44 on Tuesday, moving toward last week's 2025 lows. Shares tumbled 4.8% to 238.01 in Monday's stock market trading.
The EV giant is down 44.2% so far in 2025 once again the worst performer in the S&P 500 this year. Investors are worried that Elon Musk's political work and comments are causing Tesla brand "destruction," hitting sales significantly.
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