How do you evaluate the newly added Standard Range version of the domestic Tesla Model Y, which lowers the starting price of the vehicle to 276,000 yuan?

After converting the prices of the North American market Model Y rear-wheel drive version, which was briefly launched last year and then taken offline, and the Hong Kong version of the Model Y rear-wheel drive version announced by Hong Kong customs some time ago, the price of the domestic Model Y can be:

Reduced by another 20,000 yuan.

The current starting price of RMB 276,000 is after taking into account the national subsidy of within RMB 300,000, and the pre-subsidy price is RMB 291,840;

Let’s also reprint the exchange rate conversion of the Model Y version prices in China and the United States that was posted earlier this year. Even if we only consider exchange rate differences and do not take into account differences in profits and local supplier costs, the prices of the domestic Model Y all-wheel drive versions in both places are quite similar. Therefore, the price of the rear-wheel drive version should also follow this logic and be around 270,000 yuan;

How to respond to the assessment that the current gross profit margin of the domestic Tesla Model Y is as high as 30%, and the price may drop to 260,000 yuan in the future?

So, according to the North American market price conversion, after taking into account Chinese subsidies, the starting price of the Model Y rear-wheel drive version should be around —

250,000 yuan.

Let’s also take a look at the prices of the three versions of the Hong Kong version Model Y, which are effective from July 2 this year, announced by Hong Kong customs last week. After conversion to Renminbi, the prices are respectively 270,000 yuan, 320,000 yuan, and 350,000 yuan, which is quite coincidental;

The current pre-subsidy starting price of RMB 291,840 can still accommodate regular accessories, with the price of all three options being RMB 8,000. After selecting one of them, the price can still be within the RMB 300,000 subsidy limit, achieving a post-subsidy price of 284,000 yuan:Do you remember the teardown of Model Y by Zhihu Automotive Laboratory (aka @知乎汽车) this year on Zhihu? In the answers and the live stream after the teardown, several answerers who participated in the teardown mentioned Tesla’s huge cost advantage:

Why can Tesla “cut leek” with strength?

For a manufacturer with a huge cost advantage, the issue of price reduction is only a matter of necessity. No new car manufacturer should dare to rely on Tesla’s existing pricing to build their cars, hehe.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.