China’s Car Enthusiasts React to Tesla’s Affordable New Models

Chinese social media users have expressed varied opinions about Tesla’s newly announced budget-friendly models. The company recently unveiled more affordable versions of the Model Y and Model 3, designed to increase accessibility for potential buyers.

Tesla’s Affordable Models Overview

The “Model Y Standard” is priced at $39,990, while the “Model 3 Standard” costs $36,990. Both models are priced about $5,000 lower than their premium variants, representing a roughly 10% discount. However, these standard models lack several key features found in the higher-end versions, including leather seats, radio, rear screen for passengers, and the “Autosteer” feature of Tesla’s Autopilot.

Mixed Reactions on Social Media

• Some users on Weibo criticized the affordability of these models, comparing them unfavorably to other local electric vehicles (EVs).
• One user remarked, “The beggar’s version of Tesla’s Model Y costs 230,000 yuan. Will you buy it?”
• Others expressed that for a similar price, local alternatives offered better value. For instance, one user pointed out that for an extra 10,000 RMB, a Li Auto model could be a smarter choice.

Potential Demand for Budget Models

Despite reservations, some users believe that the budget models could perform well in the market. “A lot of people will say they aren’t interested, but Tesla could end up selling loads of them,” noted one commenter, while another expressed a desire to purchase but cited financial constraints.

Context of Price Competition in China’s EV Market

Currently, over 100 automakers, including Tesla, are engaged in intense price competition in China’s EV sector. This has led to price reductions across various models. In 2022, Tesla reported cutting prices for its Model 3, S, X, and Y by approximately 14,000 yuan (around $1,930).

Concerns About Business Strategy

• Some users have questioned the rationale behind Tesla’s budget model strategy, suggesting insufficient savings may not attract more customers.
• One comment highlighted that the 10% reduction might not substantially increase sales, urging Tesla to innovate rather than just cut costs.
• Another suggested relocating Tesla’s R&D teams to China, citing the favorable environment for EV development.

Tesla’s Market Performance

Tesla’s sales in China have seen a downtrend, with the company selling 129,000 vehicles in the second quarter of 2025, a 12% decline compared to the previous year. Following the announcement of its affordable models, Tesla’s stock fell by 4.4%, closing at $433.09.

Despite the challenges, Tesla’s stock remains up over 7% for the year, indicating a complex but ultimately resilient presence in the competitive automotive landscape.