Tesla Raises China-Made Model 3/Y Prices by RMB 10,000, Adds 40 km More Range

In response to intensifying market competition, Tesla’s popular models receive upgrades.

Tesla China has officially announced performance upgrades for the long-range variants of its locally manufactured Model 3 and Model Y. Specifically, the starting price of the Model 3 Long Range All-Wheel Drive (AWD) version will be raised from RMB 275,500 (38,570 USD) to RMB 285,500(39,970 USD). The Model Y Long Range version will maintain its current base price of RMB 313,500.

The core of this upgrade lies in the adoption of a new battery pack for both models. While the battery capacity remains unchanged, the internal cell chemistry has been optimized. As a result, the overall vehicle energy efficiency has improved. The Model 3 Long Range AWD version now boasts an increased CLTC-rated range from 713 km to 753 km, while the Model Y Long Range version sees its range extended to 750 km.

A black Tesla Model 3 displayed on a white background, showcasing performance specifications and pricing options, including the Long Range AWD version with improved range and acceleration features. — Screenshot of Tesla China Official Website

Alongside the range improvement, the Model 3 Long Range AWD now includes the previously optional acceleration boost package (valued at RMB 14,100) as a standard feature. This upgrade reduces its 0–100 km/h acceleration time from 4.4 seconds to 3.8 seconds.

This marks Tesla’s second performance enhancement this year, following a range boost for the Model 3 Rear-Wheel Drive version earlier in the year. The focus remains on continuously optimizing the efficiency of Tesla’s core technologies—battery, electric motor, and power electronics systems—to improve user experience.

Before the launch of Xiaomi’s SU7, the Tesla Model Y was consistently one of the best-selling new energy vehicles (NEVs) in the Chinese mainland market in recent years. As a benchmark, Tesla’s full-year sales in China in 2024 reached a record high of 657,000 units, an 8.8% year-on-year increase.

A red Tesla Model Y driving past a series of classical columns, highlighting its sleek design and performance specifications. — Poster released by Tesla Official

However, with competing models steadily ramping up their deliveries this year, the Model 3 and Model Y have lost their dominance in the Chinese NEV sales rankings. In May alone, Tesla China’s wholesale volume stood at 61,700 units, with the Model Y accounting for 24,800 units—trailing the Xiaomi SU7, which recorded 28,000 units.

With the recent release of the Xiaomi YU7, competition in the RMB 200,000–300,000 NEV SUV segment is set to intensify. To address the growing pressure, Tesla China has introduced new purchasing incentives, including 0% interest financing for up to five years for orders placed before July 31, effectively lowering the entry barrier for consumers.