Tesla reduced Model 3 prices by 2.2% in China. Model Y prices decreased by 3.8% to counter an ongoing domestic price war. A locally manufactured Model 3 now starts at approximately $33,160.
Tesla added an insurance subsidy of roughly $1,192 for orders placed during September. This move marks the company's first price reduction in China since November 2024.
Shanghai factory exports rose 26% during the first eight months of 2026. International shipments now account for over half of the plant's total production. These exports reportedly generate higher profit margins than domestic sales.