Tesla Offers Price Incentives in China, Raises Model Y Costs in US [Video]

Tesla (TSLA) has moved to tackle slowing electric vehicle sales and growing competition with a series of price incentives in China, while it also raised Model Y prices in the United States.

Chinese consumers buying a rear-wheel drive Model 3 sedan or a Model Y SUV can qualify for an insurance subsidy of up to 8,000 yuan ($1,100). Tesla will also provide financing plans with discounts on optional paint colors. Although it is not an official price cut, the subsidy will lower the starting price of the two cars to 237,900 yuan ($33,000) and 250,000 yuan ($34,750), respectively.

Tesla’s latest strategy follows a year of price cutsin 2023 that rattled the EV industry. Elon Musk’s company also had to deal with growing competition from domestic Chinese firms, most notably BYD, which counts Warren Buffett’s Berkshire Hathaway as an investor. BYD lowered the price of its Song Pro hybrid SUV by 15.4% on Friday, following …