On April 1st, Red Star Capital Bureau reported that Tesla (TSLA. US) China's official website showed that the Model Y series has been raised by 5000 yuan, the rear wheel drive version has been raised to 263900 yuan, the Model Y long endurance version has been raised to 304900 yuan, and the Model Y high-performance version has been raised to 368900 yuan. Adding to the expiration of the previous limited time subsidy policy, the actual increase in this price adjustment is as high as 23000 yuan.
Tesla official blog also announced that the Starry Sky Grey car paint, originally priced at 12000 yuan, is a free optional feature for the Tesla Model 3/Y.
On March 28th, Xiaomi's first car, the SU7, was officially launched. At the press conference, Lei Jun, Chairman of Xiaomi Group (01810. HK), directly compared the Xiaomi SU7 with Tesla from multiple perspectives such as sun protection, research and development, and detailed configuration, and claimed that the vast majority of indicators exceeded Tesla Model 3. He also bluntly stated that the pricing strategy of Xiaomi SU7 is to benchmark against Tesla Model 3.
However, he also acknowledges that Tesla has two better indicators. Firstly, it has the world's highest electricity consumption, and it will take Xiaomi three to five years to catch up; Secondly, Tesla ranks first in the world in intelligent driving with stronger computing power. Lei Jun stated that the competition for electric vehicles needs to shift from leading in parameters to leading in experience, and the intelligent driving experience of the Xiaomi SU7 is not inferior to that of the Tesla Model 3.
On March 29th, Tesla's Vice President of External Affairs, Tao Lin, stated on social media, "Our underlying logic in research and development is to compare with the limits of physics, rather than comparing with existing products."
It is worth mentioning that Tao Lin's speech was accompanied by a screenshot of Musk's speech on social media X. Musk said, "The correct way to rate any technology is not to compare it to competitors (which is too easy), but to compare it to physical limits."
However, Red Star Capital Bureau noticed that Musk's statement, which occurred the day before the Xiaomi SU7 press conference, was actually in response to a question from a foreign netizen.
Xiaomi Motors is constantly benchmarking against Tesla, and some netizens believe that Tesla will be one of the most affected car companies because many Tesla prospective car owners may be influenced by marketing promotion to test drive Xiaomi cars.
However, Tesla's sales personnel told Red Star Capital that the impact was not significant. "Although a portion of Model 3's customers will be split, Model Y is not significantly affected."
Automotive industry analyst Liu Hao also told Red Star Capital Bureau, "Xiaomi SU7 and Tesla Model Y are not direct competitors. Although Model 3 has been affected, there are significant differences in brand tone and user groups between Xiaomi and Tesla."