Tesla China raised the price of the Long Range version of the Model Y by 10,000 yuan (1,400 USD) on Tuesday. However, the Model Y Rear-Wheel Drive price remains unchanged, and Tesla has even started offering incentives to sports demand.

The new Model Y Long Range launched in January in China ahead of Europe and US markets for 303,500 yuan (41,950 USD). After today’s price hike, the new price is 313,00 yuan (43,270 USD).

The Model Y LR has 78.4 kWh from LG, which is good for 719 km under CLTC conditions. It is AWD with 331 kW dual motors.

The entry-level Model Y Rear-Wheel Drive price is unchanged at 263,500 yuan (36,430 USD). However, Tesla has started offering various incentives to boost its sales. Customers who purchase the RWD version between March 18 and April 30 will have up to three years of 0% financing.

With a downpayment of 79,900 yuan (11,050 USD), the customer will get 1-3 years of 0% financing. With a lower downpayment of 45,900 yuan ( 6,350 USD), they will get 1-5 years of “low interest” financing of about 1.84%

The Model Y LR has 62.5 kWh from CATL, which is good for 593 km under LTC conditions. It is an RWD with a signal electric motor with a maximum power of 220 kW.

Tesla currently sells only those two trims of the Model Y SUV in China.

Additionally, Tesla offers insurance subsidies for Model 3 sedans of 8,000 yuan (1,110 USD).

Editor’s comment

This is a highly surprising move, as the EV price war is still ongoing in China. The RWD version of Model Y seems to be in low demand, and Tesla wants to even out orders of the Long Range and Standard Rage trims. The current waiting time for the entry-level RWD version is 2-4 weeks, while the waiting time for the Long Range variant is 6-10 weeks. It was previously reported that Tesla got 200,000 orders for the new Model Y. However, many of them were fully refundable.