Tesla raises the Model 3 and Model Y prices in China, makes them slightly lower than the Model S competitor NIO ET7
Tesla is raising the prices of its Model 3 and Model Y electric cars in China yet again, after it already upped their tags a month or so ago. The basic Model 3 will cost the equivalent of US$41,795 after subsidies, while the Model Y gets bumped the whopping 7.5% to 301,840 yuan (~US$47,490). The Model Y's sticker shock will be even more significant for Chinese buyers, as with the new Tesla price increase it budges just above the 300,000 yuan government subsidy threshold. The explanation for the new base Tesla Model 3 and Model Y price increases is rather prosaic this time around, as it doesn't involve chip shortages or supply chain problems, but Tesla is raising prices simply because it can, on account of demand for its EVs going through the roof.
In the meantime, however, one of Tesla's direct competitors in China, NIO, has announced the prices for its 2022 ET7 performance electric sedan, and they are in the Model 3 ballpark, all the while the car is a direct competitor to the much more expensive Model S, reflecting what's on offer. The base NIO ET7 with the 75 kWh battery starts from the equivalent of US$68,740, while the long-range 100 kWh version will cost 77,628 in USD after subsidies. That's more than the Tesla Model 3 Long Range, but way less than the US$129,990 that Tesla will reportedly charge for the Model S Plaid in China when it launches there in March. The ET7 also has models with a way larger battery pack and has a support network that can swap it in a jiffy when it runs out instead of charging it.
The reason that NIO qualifies for government subsidy even though its EVs cost above the threshold, while Tesla does not, is precisely because it offers the aforementioned battery swap service. China doesn't have a price cap on subsidies for EV models that can have their battery changed for a fresh pack quickly instead of waiting by the charging station. Still, NIO warns that government help will be 30% lower this year than it was in 2021. As for the price of the NIO sedan with the 150 kWh semi-solid state battery that will offer over 600 miles range on a charge, that's to be announced at a later date in 2022.