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Price reduction is one of the most sensitive topics for Tesla car owners. Recently, Tao Lin, vice president of Tesla, once again talked about the price issue.

Tao Lin said in an interview with domestic media, "Tesla's localization rate target has been basically achieved, and it is unlikely that prices will continue to be reduced in the future."

At present, the Chinese-made Model 3 standard battery life upgrade model, which is on sale on Tesla's official website, is priced at 249900 yuan after subsidy. The long-lasting version of the Model 3 made in China costs 309000 yuan.

Tao Lin also said that the price of electric vehicles is related to cost and is affected by the cost of raw materials and the cost of electric vehicle parts. If the prices of raw materials or spare parts rise in the future, Tesla's electric cars are not without the possibility of price increases.

Tesla adjusted vehicle prices many times, and earlier there was an incident in which car owners collectively pulled banners to protect their rights. Take the standard battery life upgrade version of the domestic Model 3 as an example, the price of the model has been reduced by nearly 80, 000 in a year and a half since the starting price was first announced last year at 328000 yuan.

The most recent price cut occurred on National Day on October 1. Tesla officially announced a price reduction at that time, and the price of the domestic standard battery life upgrade version of Model 3 was adjusted to 249900 yuan after subsidies, a reduction of 21650 yuan compared with the previous price, which is also the lowest price since Model 3 was made in China. The new Model 3 standard battery life upgrade comes with a lithium iron phosphate battery pack supplied by Ningde Times, with range increased from 445km to 468km.

Some owners of Tesla, who soon picked up the car, expressed their dissatisfaction, and some owners thought they had been induced to spend, and the sales and delivery staff promised not to cut prices in the near future. In view of the price reduction, Tesla's compensation scheme is in line with the seven-day confidence guarantee plan for car owners to give away three years of free overcharge rights and interests.

Subsequently, Tesla China lowered its "confidence guarantee plan". Tesla's confidence guarantee plan was terminated and offline on October 16, 2020, and all car purchase orders after that no longer enjoy the protection of the plan, according to the official website.

Tao Lin also responded to the issue of price reduction discussed by netizens, saying on her personal Weibo, "I don't ask for everyone's understanding and approval." but we hope that gradually people can believe that our original intention is to enable consumers to have more cost-effective products rather than maximize their own profits. " She also said that price adjustment is a highly confidential job, and any time it is announced, a group of consumers who pick up cars in the near future will be affected.

According to market data estimates, according to the current production process of Tesla Shanghai Super Factory, the cost price of domestic Model 3 may be less than 200000 yuan, which means that the gross profit margin of domestic Model 3 is about 30%, far exceeding the gross profit margin of electric cars produced in the United States, and will also provide Tesla with more room for price reduction. Some people in the industry have also pointed out that Tesla's modulus is increasing rapidly, and the increase in modulus will inevitably lead to a reduction in the cost of bicycles, which will inevitably lead to an adjustment in pricing. Tesla may continue to reduce prices in the future.

The sales volume of the Model 3 made in China in November 2020 was 21604, and the cumulative sales from January to November was 113655, making it the single new energy model that ranked first in the Chinese market this year, according to the Federation of passengers.

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