Tesla Clears Out Model Y in China, New Version Coming in April

According to information from China, the major update of the Tesla Model Y will be launched in April. The time to clear inventory.

The major maneuvers are coming into place, and there is urgency. Tesla’s sales level in China has stagnated for months, even as the electric vehicle market, like in Europe, continues to grow there. It’s as if a glass ceiling now prevents Tesla from increasing its grip.

We can only repeat ourselves, but Chinese competition is now on par technologically, all for prices 30% lower and model refreshes at most once a year. Conversely, Tesla remains anchored, like European manufacturers, on a timeframe of about ten years with a mid-cycle restyling…

The Model 3 has not gained popularity in China, so it is necessary to accelerate a similarly deep update of the Model Y, Tesla’s worldwide best-seller. If the Model Y falls, the entire Tesla empire will collapse. Financial markets have understood this and have severely punished the American manufacturer with a 31% devaluation of its market capitalization in one month. That’s nearly $250 billion in lost value!

EMPTY THE STOCKS IN AN EMERGENCY

But before renewing a car, the existing stocks must be sold, or else the loss of value will once again be enormous. The discounting parade has already started in China where the “new” Model Y is expected to go into production in April. This would mean an imminent presentation.

That’s why, after an initial price drop in mid-January, the Tesla Model Y now benefits from a discount of 8,000 yuan (1,045 euros) exclusively on already in-stock units. This drop of 2,000 euros since January 13, 2024, still does not seem to boost sales.

From a French perspective, one might say that a 2,000-euro discount isn’t much. But it’s necessary to put the Model Y Propulsion into context. In China, it costs 32,700 euros without any eco-bonus, compared to 42,990 euros in France before a 5,000-euro bonus. Sure, VAT and labor costs differ, but 2,000 euros represents a huge promotion relative to local purchasing power.

PAINTS ALSO DISCOUNTED

Because not all in-stock units are the standard color in China, Tesla is also offering a boost on other colors. The discount here amounts to 2,000 yuan, roughly 260 euros, while optional colors in China cost between 8,000 and 12,000 yuan (about 1,045 to 1,560 euros). In France, these same paints range from 1,300 to 2,600 euros…

Following Chinese logic, then France and Europe might see similar discounts on the Model Y in the coming months to also clear stocks. The recent price drop on January 17, 2024 likely already helped significantly.