Tesla's newest bid to make electric cars more affordable has ignited a fiery argument throughout the Chinese social media site Weibo.
Tesla recently launched base versions of the Model Y and Model 3, but barebones features and slight price reductions have many users skeptical.
Tesla's New Budget Models Are Finally Here
On Tuesday, Oct. 7, Tesla released the Model Y Standard and Model 3 Standard, priced at $39,990 and $36,990, respectively, per CNN. The new vehicles are approximately $5,000 less expensive, nearly a 10% discount from their more premium equivalents. With that said, there is a price to pay.
Unlike the pricier models, these models don't come with leather seats, a rear entertainment screen, a radio, or Autosteer, part of Tesla's Autopilot system. The cars will be for sale beginning next month in limited markets.
Mixed Reactions on Weibo: 'The Beggar's Version'
Chinese EV fans soon turned to Weibo to express their views. Many label the lower-priced Teslas disappointing. One of the derisive posts, which referred to the "beggar's version" 230,000 yuan Model Y, went viral with hundreds of responses.
One Chinese consumer said that he wouldn't purchase any of the newly launched Standard model. He added that at the same price, people can get more features in local brands.
"For 10,000 RMB less, I would take the Li i6 from Li Auto. That's a more intelligent offer," said another.
Others saw through the criticism and thought the cars would sell well anyway.
"They will say they don't want them, but Tesla will likely sell a gazillion of them," said one of the more optimistic commenters.
Tesla's Struggle in China's EV Sector
According to Business Insider, Tesla is under increasing pressure in China's EV sector, where over 100 carmakers are involved in an aggressive price war. To remain competitive, the automaker has already dropped prices multiple times. It reduced its prices for its Model 3, S, X, and Y by around 14,000 yuan ($1,930) last year.
Its biggest rival, BYD, has been deeply discounting cars also, although the company conceded in its August earnings report that those efforts damaged profitability.
Detractors Question Tesla's Strategy
Some Weibo users wondered why Tesla did that. They said that the EV giant was vague in their target market. Another car enthusiast said that Tesla shouldn't prioritize cost-cutting over innovation.
Others even went so far as to recommend that the company shift its R&D to China, contending that the nation provides a more suitable climate for EV development based on its pace and efficiency.
Originally published on Tech Times
