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Tesla recently global price cuts, first the Model 3 / Y was announced in China down to 229,900 RMB/ 259,900 RMB of new record low, and the U.S. version of the Model Y last week is a direct price cut of 88,000 RMB, but at present mainland China is still the world’s cheapest market is located.

The effect of the price cut is also immediate, after news that Tesla China announced a price cut within three days after the rapid increase of 30,000 car orders.

The first financial visit found that Tesla’s price cut has caused users to be enthusiastic, and even some city stores have seen a 500% increase in orders compared to the orders in December last year. The industry believes that in the case of national subsidy cancellation and no significant drop in costs, it is difficult for other car companies to follow Tesla’s price cut across the board.

Tesla Model Y price reduction before the pick-up cycle of 1-4 weeks, has become 2-5 weeks, which also disguised that the number of people buying cars after the price reduction is increasing dramatically.

Image source Pexels

It is worth mentioning that Tao Lin, Tesla’s vice president of external affairs, also said previously that the price adjustment of Tesla covers numerous engineering innovations, starting from the “first principle” and insisting on cost-based pricing. In response to the country’s call for action to promote economic development and unleash consumer potential.

In the past 2022, Tesla’s global deliveries of 1.31 million units, did not reach the expected 1.5 million units, Tesla’s price reduction may also have sales pressure behind the reason. However, according to the financial sector, Tesla’s vice president of external affairs Tao Lin was asked in an interview: “Tesla’s global order volume has declined since July last year, so there are also voices that Tesla’s price cut is because the growth rate of orders on hand has not been able to keep up with the climbing rate of production capacity. But after the price cut, the delivery cycle for Model Y models has changed from the previous 1-4 weeks to 2-5 weeks, does this mean that orders are starting to come in again?”

In this regard, Tao Lin responded that there are some media said that we (Tesla) because we can not sell before the price cut, I think it is indeed nonsense, Tesla inventory is very transparent and you may see some differences between our production and sales now, mainly because the volume is large, like some cars on the way to transport.

In addition, Tao Lin pointed out that the delivery cycle also has a certain relationship with the effective working hours, such as the Chinese New Year holiday, so the entire month of January only almost two weeks, it is not quite able to reach full production state, will certainly be different than the production of October every day when the full production, the corresponding delivery cycle will be different.

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