Tesla made a less expensive version of the Model 3 available for sale to the Chinese market.
Just days after reporting a small profit for the fourth quarter of 2018, Tesla opened up sales of a lower-priced Model 3 to buyers in China while changing the variant names for the Model S and Model X.
The EV maker is offering the long range, rear-wheel-drive Model 3 variant starting at 433,000 yuan, or about $64,000, according to Reuters. By comparison, the medium-range RWD Model 3 in the United States starts at $35,950. Tesla doesn’t currently sell the rear-drive, long-range version in the U.S. right now.
The 433,000 yuan represents a significant price cut from what they were originally selling for in China: 499,000 yuan. It’s not clear where those vehicles will be produced in the Fremont, California plant or in the Shanghai Gigafactory, which is currently under construction but expected to be complete before the end of the year.
The Model 3 sedans ordered now will be delivered in March. The new pricing by the California-based EV maker reflects its desire to keep its mainstream car appealing despite the ongoing trade issues between the U.S. and China that have ratcheted up prices on some goods.
(With more product coming, Musk promises good things ahead despite possible recession. Click Here for the story.)
The Tesla Model S gets a new name for its P100D model: Performance. The Model X gets the same moniker.
The company said in October that its China sales have been hammered after Beijing raised tariffs on imports of U.S. autos to 40% in July. China has since temporarily suspended the additional 25% tariff, reducing it to the 15% level.
In addition, the company has elected to change the naming convention for its Model S and Model X vehicles. In the past, the vehicles had been named after the type of battery that was in the vehicle, i.e. 75D or P100D.
Now, the company plans to use actual names. What used to be the P100D will be called “Performance.” If yours is equipped with Ludicrous mode it will be called “Performance with Ludicrous Mode.” The addition of Ludicrous Mode adds $20,000 to the price tag.
(Click Here for more about Tesla missing Q4 earnings, raising new concerns.)
The Model S and Model X also see price drops from the base model, which keep them in line with the price cut given the Model 3 earlier when the federal tax subsidy ran out at $7,500. Now buyers only get $3,750 off and that only runs until later this year. By 2020, there will be no tax break for buying any version of the Tesla, even the Model Y when it comes out that year.
The Tesla Model X also gets the "Performance" name as well as a small price cut.
The aforementioned base models keep their current monikers: Model X and Model X with no additional tags. However, they can be upgraded with the same 100 kWh battery pack that’s in the Performance models, but it costs $8,000 for them to unlock the software.
Base range on the Model S is rated at 310 miles and the Model X gets 270 miles, by unlocking the extra range the Model S range jumps to 335 miles and Model X range to 295 miles.
(To see more about Tesla’s new Gigafactory in Shanghai, Click Here.)
All these moves come after CEO Elon Musk told investors, analysts and media during the company’s earnings call that the company faced significant headwinds in the near term, but he expected 2019 to be the company’s best year ever.