Price war escalates! Tesla (TSLA.US) launches limited-time car purchase discounts in China, with a maximum reduction of 3,460 yuan.

On Friday, Tesla (TSLA.US) announced new promotional measures, including insurance subsidies, to attract consumers in China, the world's largest automobile market. In China, the American electric car giant is engaged in a long-lasting price war with various car companies. According to Tesla officials, the Model 3 and Y are offering limited-time discounts on ready-to-deliver cars, with maximum discounts of 34,600 yuan. The promotion is valid for one month. Specifically, the limited-time discount purchase promotion includes three parts: limited-time insurance subsidies, limited-time specified paint benefits, and limited-time low-interest financial policies. The limited-time insurance subsidy offers a maximum discount of 8,000 yuan, the limited-time specified paint benefits offer a maximum discount of 10,000 yuan, the limited-time low-interest financial policy offers an annual fee rate as low as 1.99%, and the Model Y offers a maximum discount of 16,600 yuan, with a total discount of 34,600 yuan. When asked about Tesla's inventory in China, a sales representative mentioned that it is limited but refused to provide details. Tesla has not responded to requests for comments. Facing slowing demand and intensifying competition, Tesla significantly lowered the prices of some Model 3 and Y models in China in January this year, and has been offering cash discounts for certain Model Y models since February 1st. Meanwhile, Tesla's biggest competitor in China, BYD Company Limited (01211), which successfully became the world's largest electric car manufacturer last year, introduced a series of new vehicles with larger discounts in February. On Friday, BYD Company Limited also lowered the starting price of the new Song Pro DM-i by 15.4%.