Following a challenging December, Tesla China appears to be more determined than ever to ensure that its place in the country’s electric vehicle sector is as strong as ever. This was highlighted recently after Tesla China rolled out a series of aggressive Model 3 and Model Y price cuts. The adjustments are so notable that the Model 3 is now the cheapest it’s been in the country.
Tesla currently produces the Model 3 sedan and the Model Y crossover at Gigafactory Shanghai, the company’s primary vehicle export hub. Two versions of the Model 3 — the base RWD version and the Dual Motor Performance — are offered in China, while three versions of the Model Y — the base RWD, the Dual Motor AWD, and the Dual Motor Performance — are available.
Following the recent Model 3 and Model Y price cuts in China, the starting price for the entry-level RWD Model 3 has been changed to RMB 229,900 (about $33,500), a decrease of RMB 36,000 compared to its previous price of RMB 265,900 (about $38,700). This is the lowest starting price for the Model 3 in China to date, as it’s lower than the vehicle’s January 2021 price of RMB 249,900 (about $36,400).
On the other hand, The starting price for Tesla China’s Model 3 Performance has been updated to RMB 329,900 (about $48,100), a decrease of RMB 20,000 from the top-tier all-electric sedan’s previous price of RMB 349,900 (about $51,000). For comparison, in the United States, the Model 3 RWD currently costs $46,990 and the Model 3 Performance costs $62,990.
Tesla’s price cuts for the Model Y crossover in China are just as notable. The starting price for the base RWD Model Y has been updated to RMB 259,900 (about $37,800), a decrease of RMB 29,000 from the previous price of RMB 288,900 (about $42,100). The Model Y Long Range with dual-motor AWD now has a starting price of RMB 309,900 (about $45,100), a decrease of RMB 48,000 from RMB 357,900 (about $52,100).
The starting price for Tesla China’s Model Y Performance has been updated to RMB 359,900 (about $52,400), a decrease of RMB 38,000 from RMB 397,900 (about $58,000). In the United States, Tesla currently sells the Model Y Dual Motor AWD for $65,990 and the Model Y Performance for $69,990. Tesla does not sell the base RWD version of the Model Y in the United States, at least for now.
Tesla’s most recent Model 3 and Model Y price cuts would likely make the two mass-market EVs more competitive in China’s domestic auto market. As per December’s results, Tesla China is seeing a lot of competition from local rivals such as BYD, whose Seal electric sedan beat the Model 3’s sales last month. The BYD Seal has comparable specs and range to the Model 3, but it’s offered at a lower price. With its new pricing, however, the Model 3 may very well give the BYD Seal, as well as its other rivals, a serious run for its money this Q1 2023.
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Tesla firmware shows new Model Y seat configuration is coming
Tesla could be adding another seating configuration beside the seven-seater to the Model Y lineup later this year.

Tesla firmware has been a great place for some to reveal what the company has in the pipeline, and a new seating configuration for the best-selling Model Y looks to be on the way.
Last week, we reported that Tesla was already hinting toward a 7-seater configuration of the Model Y in a promotional email it sent to those on its contact list.
However, firmware revealed by Tesla hacker greentheonly is showing that a new seating configuration is on the way — a six-seater:
The much rumored about 6-seater Model Y made an appearance in the firmware.
Unlikely to be China-only as some of the speculations said.Some weird “slow down to save energy, people typically drive this much slower here to save %%” nav suggestions.
— green (@greentheonly) June 16, 2025
Green says the configuration would not be available in China-only, and will be potentially for sale in other markets as well.
The six-seat and seven-seat configurations of the Model Y were available in the Legacy version of the vehicle, but were met with mixed reviews, as many complained about the lack of legroom in the third row.
This was something that was a real concern for many of those owners who needed something larger than the traditional five-seat variant, but did not want to buy the much more pricey Model X.
We’ve covered the size of that third row on several occasions.
Some owners even took the idea of having a seven-seater into their own hands:
Tesla Model Y third row seat test explores options for a comfortable 7-seat setup
Tesla did not explicitly announce a six-seater configuration of the Model Y, but Lars Moravy, the company’s VP of Vehicle Engineering, said the seven-seater would come to production later in 2025.
News
Tesla confirms massive hardware change for autonomy improvement
Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.

Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.
Tesla first introduced a front-facing camera on the front bumper with the Cybertruck.
Then, the Model Y “Juniper” received the hardware update. The Model S and Model X both received the front-facing camera with its latest update, which was officially revealed last week.
Tesla used new language with the release of the front-facing cameras on the Model S and Model X, confirming they will assist with several things, including “using Autopilot and Actually Smart Summon capabilities”:
“Enhanced visibility when parking or using Autopilot and Actually Smart Summon capabilities.”
This tiny feature on the new Tesla Model Y is perhaps its biggest addition
This is the first time Tesla has used this sort of language, as it was a completely different description with the launch of the new Model Y in January.
When Tesla launched this vehicle, it said the front bumper camera “provides a wider field of view for automatic assisted driving and advanced Smart Summon.”
Tesla switched from using cameras and sensors to only cameras with the launch of Tesla Vision several years ago. The company’s utilization of cameras comes from Tesla’s belief that Ultrasonic Sensors (USS) are not needed for self-driving efforts:
“Along with the removal of USS, we simultaneously launched our vision-based occupancy network – currently used in Full Self-Driving (FSD) (Supervised) – to replace the inputs generated by USS. With today’s software, this approach gives Autopilot high-definition spatial positioning, longer range visibility and the ability to identify and differentiate between objects. As with many Tesla features, our occupancy network will continue to improve rapidly over time.”
CEO Elon Musk has said that sensors were only a crutch and that self-driving would be solved through the use of cameras:
“When your vision works, it works better than the best human because it’s like having eight cameras, it’s like having eyes in the back of your head, beside your head, and has three eyes of different focal distances looking forward. This is — and processing it at a speed that is superhuman. There’s no question in my mind that with a pure vision solution, we can make a car that is dramatically safer than the average person.”
News
Tesla features used to flunk 16-year-old’s driver license test
A license examiner in New Jersey confused one standard feature of Teslas as a way a 16-year-old excelled through his driver’s test. He failed him because of it.

In what is becoming a more common occurrence, a few Tesla features were used to flunk a 16-year-old who took his driver’s license test in New Jersey.
It is not the first time this has happened, as we have reported on several instances of this in the past, both in the U.S. and other countries in the world.
It is evidence that some officials are not caught up in the technology and innovation occurring in the automotive market, some of which is not necessarily exclusive to Tesla, but is included in each of its models, unlike other companies.
Lochlan Keefer, a New Jersey resident, showed up to his driver’s test with his dad, James, in their 2022 Tesla Model Y. However, the test did not go according to plan, according to the examiner who rode along for the test with Lochlan. They accused him of using parking and “stopping assistance” to go through the test.
The examiner cited the following as the reason for failure:
“Had the parking and stopping assistance on never stepped on the brake to stop his self let the vehicle stop it self.”
James said to NJ.com that they do not subscribe to Tesla’s Full Self-Driving suite, which includes things like Autopark, Navigate on Autopilot, and Autosteer on City Streets. These are a few of the things that have been used as reasoning to fail drivers in tests. Lochlan’s was a case of regenerative braking, which is standard on all vehicles, and Autopark:
“The examiner accused my son of using driver assistance features simply because he parallel parked smoothly on the first try. He was specifically accused of using paid parking-assist and driving features, which we do not subscribe to.”
It sounds as if the examiner may have confused the braking mishap for Tesla’s regenerative braking, which slows the vehicle when the accelerator is not pressed. The energy is then stored back in the battery to help with range.
The examiner failed Lochlan, and James asked if he could take the test again if they disabled the regenerative braking for the exam. The examiner said Lochlan would have to wait two weeks. A supervisor came out and backed the examiner, but James said the policy the DMV claimed the Keefer’s violated was nowhere to be found:
“I asked them to show me the policy they claimed we were violating. They couldn’t find it and they couldn’t cite it. When I showed them the policy, they refused to read it.”
The report states that drivers in California and Arizona have also been subjected to failures on their driving tests due to confusion over Teslas and their driver assistance features.
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