Tesla has made headlines once again with a significant price cut for its Model 3 Long Range Rear-Wheel Drive (RWD) in China. The company reduced the price by 10,000 yuan (approximately $1,400), bringing the new cost to 259,500 yuan (around $36,070). This announcement comes less than a month after the model’s debut on August 12, when it was initially priced at 269,500 yuan ($37,470).
The Model 3 Long Range RWD is not just known for its attractive price point but also its impressive specifications, offering a range of 830 km and a 0-100 km/h acceleration time of only 5.2 seconds. The updated pricing, which is now reflected on Tesla’s official website, is effective immediately. In addition, all four variants of the Model 3 have reportedly received range enhancements, further enhancing their appeal to consumers.
Market Dynamics and Challenges
This pricing adjustment comes on the heels of the recent launch of the Model Y L variant in the Chinese market on August 19, which started at a price of 339,000 yuan ($47,120). An insider from Tesla China, speaking to National Business Daily (NBD), emphasized that “considering the current configuration, this price still holds strong appeal.” This statement underscores Tesla’s strategy to remain competitive in a rapidly evolving market.
However, Tesla faces increasing challenges in China, as highlighted by data from the China Passenger Car Association (CPCA). Sales from Tesla’s Shanghai Gigafactory have shown a noticeable decline, with July 2025 sales at 67,000 units—a drop of 8.4% compared to July 2024’s 74,000 units, and a 5.2% decrease from June 2025’s 71,000 units. Cumulatively, Tesla’s sales in China from January to July 2025 totaled approximately 432,000 units, marking a 13.6% decline from 500,000 units during the same period in 2024.
Strategic Moves Ahead
In response to this challenging landscape, Tesla is actively adjusting its strategies with new product introductions and competitive pricing. In addition to the Model 3 Long Range RWD and the Model Y L, the company is gearing up for the launch of a more affordable version of the Model Y. During the Q2 earnings call, Tesla CEO Elon Musk indicated that this “affordable car” is expected to hit the market by the end of this year, with mass production scheduled to commence in the latter half of 2025.
As Tesla navigates through these market dynamics, its ability to adapt and innovate will be crucial in maintaining its position as a leader in the electric vehicle sector in China.