New model will allow for China government subsidy discount
Electric-car maker Tesla may be hoping to erase some difficult months in China with the release of a cheaper Model Y.
The auto maker $(TSLA)$ on Thursday unveiled the Standard Range $(SR)$ Model Y on its China website , which takes in government subsidies and reduces it from Yen291,840. Delivery of the autos will begin in August, according to the website.
Tesla's original Model Y for its Chinese market was approved for sale .
The new version will allow buyers to take advantage of China government subsidies on electric-vehicle purchases, which only apply to those priced under Yen300,000. Plans to scrap those subsidies were shelved as the pandemic hit and the government sought to stimulate sales of electric cars.
China is a key market for electric-car makers, and Tesla faces plenty of homegrown competition, including NIO $(NIO)$, XPeng $(XPEV)$ and BYD . Concerns about sales in that country and some public-relations headaches -- backlash over its handling of consumer complaints and a recall that stoked more concerns -- are at the heart of weakness for the stock this year, say some analysts.
Shares of Tesla have lost around 9% so far this year, against a 14% gain for the Nasdaq Composite and near 15% rise for the S&P 500. On Thursday, shares were down over 2% in premarket trade, against the backdrop of broader global market weakness .
Ahead of the July 4 holiday, Tesla said it produced 206,421 vehicles and delivered 201,250 in the second quarter, .
Read:Tesla's sales show company is weathering chips shortage better than other auto makers
Tesla is scheduled to announced its second-quarter earnings on August 4.