Tesla Cuts Price of Model 3 Long Range RWD by USD 1,400 Just Two Weeks After Launch

Tesla’s competitiveness in China is increasingly tied to price.

Today, sales channels revealed that the Tesla Model 3 Long Range RWD has been discounted in China, with the official guide price lowered from RMB 269,500 (~USD 37,800) to RMB 259,500 (~USD 36,400) — a cut of RMB 10,000 (~USD 1,400).

The move came swiftly and without a formal announcement. For a model that launched just half a month ago, such an immediate price drop underscores the real pressure Tesla faces in the Chinese market.

The Model 3 Long Range RWD is essentially a single-motor rear-wheel-drive version of the dual-motor AWD, designed to extend range and reduce cost. Tesla clearly knows that in the highly competitive RMB 200,000–300,000 (~USD 28,000–42,000) segment, it needs to offer consumers a “longer range + lower entry price” package.

On paper, its 830 km CLTC range looks strong. But in China, where product cycles move at lightning speed, that alone isn’t enough to hold ground.

Competitors in the same price bracket highlight the challenge. XPeng’s new P7 delivers 820 km of range and an 800V platform with 5C fast charging — all at RMB 239,800 (~USD 33,400). Xiaomi’s SU7 Pro offers 830 km of range for RMB 245,900 (~USD 34,400), while also boasting advanced smart features and strong brand appeal. With many similar models on offer, the Model 3’s 830 km version looks neither cheaper nor more technologically compelling.

Sales figures tell the story more clearly. In July, Tesla delivered 9,851 Model 3s in China, down sharply from 16,636 in June — a month-on-month drop of over 40%. In contrast, Xiaomi’s SU7 sold 24,410 units in July, up from 23,225 in June. With the XPeng P7 also hitting the market, Chinese brands are rapidly stepping up in the RMB 200,000–300,000 segment, eroding the Model 3’s market share.

Chinese consumers now prioritize long range, ultra-fast charging, and intelligent cockpits. Domestic automakers can refresh or upgrade models almost annually, while Tesla relies more on price cuts and minor trim changes to extend its lifecycle. This mismatch in product cadence is steadily weakening the Model 3’s edge.

Notably, Tesla has not announced any compensation for customers who purchased the model prior to this price adjustment.