Elon Musk's Tesla has reduced prices on the two most expensive Model Y electric vehicles for Chinese buyers. The decision was made due to a drop in supplies to the Middle Kingdom, Bloomberg found out.

Thus, the cost of Model Y Long-Range and Performance has been reduced: to 299,900 yuan ($41.4 thousand) and 349,900 yuan ($48.4 thousand), respectively. Prices fell by about 14 thousand yuan ($1.9 thousand). The publication noted that these are record low prices.

Tesla made the decision against the backdrop of a drop in the volume of deliveries of electric vehicles to China: they decreased by 31%. This is the lowest level in 2023.

The current price cuts may not be the last, says Bernstein Research analyst Toni Sacconaghi:

“This year or next year, the company will have to further reduce prices or increase advertising activity, which will put additional pressure on profitability dynamics.”