Electric vehicle (EV) maker Tesla (TSLA) has cut prices of its new, long-range, rear-wheel-drive (RWD) Model 3 variant by 3.7% in China to beat competition. Deliveries of this new model are set to begin soon, and Tesla is adjusting prices to attract customers amid intensifying competition from domestic rival BYD (BYDDF).
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At the same time, Tesla’s sales in Norway jumped 38.59% year-over-year to 2,959 vehicles in August 2025. The surge was driven largely by sales of the Model Y. According to estimates from EU-EVs, Tesla sold 2,450 Model Ys in August, making it Norway’s top-selling model. Despite facing headwinds in Europe, Norway has been an outlier in Tesla’s auto sales performance. In May 2025, Tesla’s sales in Norway rocketed by 213% year-over-year, and in June, sales soared by 115% compared to June 2024.
Tesla Slashes Prices to Boost Sales in China
The American automaker reduced the price of the China-manufactured Model 3 with an 830 km driving range by 10,000 yuan, bringing it down to 259,500 yuan ($36,391). At its August 12 launch, prices were expected to be higher, positioning the vehicle in the premium auto segment. However, data shows that wealthy Chinese customers tend to prefer spacious, longer-range SUVs. To cater to this demand, Tesla is also preparing to launch a six-seat version of the Model Y in China this month, starting at 339,000 yuan.
Furthermore, Tesla is offering Chinese buyers an 8,000 yuan insurance subsidy and a five-year interest-free loan, amounting to total savings of about 20,000 yuan. Despite these moves, Tesla continues to face declining sales in China due to aggressive competition from lower-priced domestic EVs. Tesla’s EV market share in the country fell to 3.2% in June 2025, down sharply from 16% in 2020.
Is Tesla Stock a Buy?
Analysts remain cautious about Tesla’s long-term outlook. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 14 Holds, and eight Sell ratings. The average Tesla price target of $306.42 implies 8.2% downside potential from current levels. Year-to-date, TSLA stock has lost 17.3%.
