Tesla reintroduced an insurance subsidy in China on the most popular Model 3 and Y variants overnight as EV giant BYD drives a major price war.
The U.S. EV giant is once again offering an RMB 8,000 ($1,113) subsidy for the base-model Rear Wheel Drive Model 3 and Model Y variants that are in inventory. Buyers must take delivery in March.
In addition, buyers will get a body paint subsidy of up to RMB 10,000. Finally, customers get subsidized loan rates.
All told, incentives are worth up to RMB 34,600 ($4,810).
In January, Tesla cut the list price of the Model 3 and the first two Model Y variants modestly. The Model 3 RWD starts at RMB 245,900 and Model Y RWD is RMB 258,900.
Tesla stock edged down 0.1% to 201.88 in Thursday's market trading. Shares are up 5.2% for the week, approaching the falling 10-week line.
BYD Price War
BYD, the world's largest EV maker and China's biggest automaker, has announced price cuts of more than 10% on a slew of low-end and mainstream vehicles, even as it adds smart-car tech such as driver assist. That, in turn, is spurring other automakers to respond.
Chinese EV sales have been weak to start 2024, with the China New Year holiday weighing on demand.
Nio, Li Auto and XPeng will release February delivery figures on Friday. BYD will report February sales on Friday or Saturday. Tesla does not break out monthly China sales, but insurance registrations have been weak like most rivals.
Li Auto will formally launch its first all-electric vehicle, the Mega MPV, along with refreshed 2024 models. Most other EV makers are introducing new models or 2024 updates.
Tesla rolled out the updated Model 3 in China last fall, but no other significant upgrades are expected this yer.
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