The gigafactory in Shanghai is cutting jobs, and Tesla is offering discounts. Only until the end of September
In short:
The American manufacturer is lowering prices on cars from Chinese warehouses for the first time since 2024
The Model 3 is now cheaper by 5,000 yuan, which is less than 3,000 zł, while the Model Y is cheaper by 10,000 yuan (5,500 zł)
Tesla is also offering an additional 8,000 yuan (4,400 zł) discount on insurance purchases for buyers of cars from Shanghai
In the first seven months of 2026, the Gigafactory Shanghai delivered 266,204 cars to the Chinese market
This represents a 12.4% decrease compared to the previous year
Tesla: Prices dropping, but only for a short time
Tesla had no choice. As data from the China Passenger Car Association (CPCA) showed a clear decline in deliveries from the Gigafactory in Shanghai, the American manufacturer resorted to a move it had avoided for months—direct price cuts. According to the South China Morning Post, starting Monday, Tesla reduced the prices of vehicles in its inventory, with the Model 3 now costing 5,000 yuan less, or just under 3,000 zł, and the Model Y by 10,000 yuan (5,500 zł). The promotion will last until the end of September.
This is the first such move since late 2024. To date, Elon Musk’s company has preferred to offer incentives such as insurance subsidies or interest-free loans, avoiding direct price cuts. “Tesla has avoided reductions, focusing instead on insurance or loan subsidies to boost sales in China,” said Eric Han, a senior manager at Shanghai-based consulting firm Suolei, as cited by SCMP. “This time, discounts could trigger a new round of price wars amid weak consumer demand.”
The discount scale isn’t huge, but it is symbolically significant. A reduction of 50,000 yuan represents a 2.1% discount compared to the base Model 3 price (235,500 yuan, or 130,000 zł). For the Model Y, whose base version costs 263,500 yuan, a 10,000 yuan discount translates to a 3.8% price drop. Tesla also adds an additional 8,000 yuan (4,400 zł) subsidy for insurance purchases for each car buyer in Shanghai.
The numbers are clear
In the first seven months of 2026, Gigafactory Shanghai delivered 266,204 vehicles to the Chinese market — 12.4% less than the previous year, according to CPCA. In August alone, Tesla recorded 86,166 deliveries (including both domestic sales and exports), representing a 7.9% month-on-month decline.
The market, which had been growing at double-digit rates for years, is now clearly losing momentum. Retail sales of EVs in China dropped by 3.9% in July, continuing a seven-month streak of declines. From January to July, Chinese manufacturers delivered a total of 5.67 million electric vehicles — 12.5% less than the previous year.
The price war is just getting started
The global consulting firm AlixPartners warned back in June that slowing sales in China would “trigger a brutal price war” in the second half of 2026. While the entire Chinese automotive sector remains profitable, the situation in the EV segment is becoming increasingly tense. Among nearly 30 manufacturers that offer only electric vehicles, only three reported profits in the first half of the year: BYD, Stellantis-backed Leapmotor, and Shanghai-based Nio — according to CPCA data.
Oskar Włostowski