A Tesla company representative said on December 7 that Tesla is giving Chinese customers a limited-time discount of $859 (6,000 yuan) on some of its models.

According to Reuters, this is in addition to the about $574 insurance subsidy previously announced. But it only applies to customers who purchase a current-model vehicle and complete delivery by the end of December.

The South China Morning Post cited two Tesla sales managers in Shanghai who wished to remain anonymous. However, they report that the latest discounts follow the U.S. carmaker’s announcement that it aims to clear inventory by year’s end due to a weakening economy and slowing demand.

Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai, said, “There are initial signs that middle-class drivers are shunning expensive smart EVs and are buying cheaper models.” But, he added, “Weak market sentiment is currently piling pressure on premium EV companies.”

Tesla cut prices for its Shanghai-made Model 3 and Model Y vehicles by up to 9.4% in late October.

Due to these steps, the Shanghai factory delivered 100,291 China-made electric vehicles (EVs) in November, a 40% increase from October and the highest monthly sales since it started in late 2020.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.