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Tesla VP Grace Tao explains China’s Model 3 and Model Y price reductions
After a challenging December, Tesla China adopted a number of strategies designed to improve its vehicle sales in the country. Among these was a price reduction on the domestically-produced Model 3 sedan and Model Y crossover. Recent comments from Tesla VP Grace Tao have now provided some insights into these price adjustments.
In a recent interview with local Chinese media, Tao was asked about Tesla China’s rather volatile pricing strategy. Similar to Tesla in the United States, Tesla China saw a number of price adjustments over the past year. This has resulted in some netizens in the country stating that Tesla’s pricing strategy is “too casual.”
Addressing the inquiry, Grace Tao explained that the pricing strategy of Tesla China’s vehicles is “actually a forecast of the company’s cost changes in the next period of time.” She also explained that the landscape had changed now, at least compared to the last year due to the end of the pandemic.
“The biggest difference between 2023 and last year is that the epidemic is basically over, and we believe that the supply chain has largely returned to normal and will not experience the various unpredictable shortages of materials that have occurred in previous years, leading to uncertainty in costs. In my personal opinion, price adjustments reflect our good planning for the supply chain to a certain extent. We expect what the vehicle cost will be approximately and then make such adjustments according to this expectation,” the executive said.
The Tesla VP also addressed the issue of some consumers in China who were upset that they bought vehicles before the recent round of price reductions took effect. So notable were the reactions of some consumers that protests were reportedly held in a number of Tesla stores.
“Maybe some consumers say that ‘I bought it yesterday, and you can’t suddenly change the cost overnight,’ but the fact is that no company calculates the cost every day, but rather calculates it on a time period. At the same time, the price of industrial products cannot be immediately reflected in the terminal products. Some raw materials may still be contracted a few months ago, so it actually has a certain lag.
“In addition, the price of a product is not only affected by its own cost, but also by the market demand and competition. If there is a change in the market demand or competition, it will also affect the price of the product. Therefore, the price adjustment of a product is not a simple matter. It is a comprehensive consideration of the enterprise’s own cost, market demand and competition,” the executive said.
Overall, the executive clarified that Tesla China’s price adjustments are not casual at all. Instead, they are done with a clear understanding of the company’s costs, demand in the market, and competitors. So far, however, Grace Tao noted that Tesla China has not had to change its strategy due to market demand or competition, which bodes well for the company’s footing in the country’s auto market. The executive also highlighted that after this recent round of price reductions, the cost of the domestically-produced Model 3 and Model Y should become more stable.
“In the past, Tesla has made several larger price adjustments due to external factors that have had an impact on costs. For example, when we became a domestic car(maker), the price naturally decreased compared to a pure import, at least the tariff was saved by 15%. For example, after our supply chain stabilized, it would definitely be lower than before when it was shipped from abroad. Tesla’s supply chain localization rate is now 95%, so theoretically, there is not much room for improvement. Therefore, I think after this price adjustment, the price should be relatively stable.
“Tesla’s logic is very simple. When the cost is calculated to have changed, such as changing raw materials, we will immediately increase or decrease the price. Actually, Tesla’s logic is very simple. Consumers seem to think that the price drop was relatively large compared to last month, but in fact, the price rose last month, and compared to the costs before the price increase, the difference is not large,” she said.
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Tesla will resolve its massive recall of nearly three million vehicles in China with stickers and a software update.
On Friday, Chinese regulators filed recall plans against Tesla, Xiaomi, Leapmotor, Xpeng, Chery, Geely, Dongfeng, Arcfox, and FAW to resolve what is essentially a carbon-copy issue throughout each of the companies’ vehicle models: emergency door release latches are simply not visible enough.
Tesla door handle saga gets its latest chapter and a big change is coming
The companies will be required to add things that will make these latches, which will open the door in the event of an emergency, more visible. Of the 7 million vehicles impacted, Tesla accounts for 2,975,910 units. More than 1.9 million of those are Model Y vehicles, with the rest, just over 970,000, being Model 3s.
To resolve the issue, Tesla is going to add warning labels to the emergency latches free of charge, and then utilize an Over-the-Air update to add a post-crash window-lowering strategy, according to CNEVpost.
This massive effort to fix the all-electric Model Y and Model 3’s emergency latch system comes just months after several probes across various markets identified the trouble some had identifying this latch. Those who had gotten involved in car accidents that stripped the vehicle of its power were not aware that every Tesla has emergency door latches.
China’s State Administration for Market Regulation (SAMR) said that severe crashes that disable a vehicle’s low-voltage system could not only hinder occupants from getting out, but also make it more difficult for emergency response workers to gain entry.
SAMR is starting to tighten the regulations it has on door handles on vehicles. A new mandatory national standard will take effect for all models starting January 1, 2027, and will require all doors to be equipped with mechanical release mechanisms. This will effectively end purely electronic door handles. Models already on sale with type approval have been granted a two-year transition period, which will enable things to change until January 2029.
Tesla has officially confirmed plans to bring its all-electric Semi truck to Europe, with full specifications and market-launch details set for unveiling at the IAA Transportation trade fair in Hannover, Germany.
The event runs September 15–20, with a possible press preview on September 14. The announcement, shared via Tesla’s Semi account, marks a significant expansion beyond North America nearly nine years after the truck’s original 2017 reveal.
🚨 Tesla Semi is coming to Europe!
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$19.99 USDSustainable logistics is a huge market internationally, and now Tesla is involved in it outside of the U.S. market! https://t.co/q3hjX6ybMv pic.twitter.com/mxTaVY3UsE
— TESLARATI (@Teslarati) August 20, 2026
In the United States, the Semi’s path has been gradual. Limited pilot production and customer deliveries began in late 2022, primarily to fleets such as PepsiCo. After years of refinement, high-volume manufacturing started on April 29, 2026, at a dedicated facility adjacent to Gigafactory Nevada.
The plant targets an annual capacity of 50,000 units, though the ramp is expected to be gradual, with “many thousands” of trucks projected by the end of 2026.
Demand is building, with recent orders including 500 units for Einride (deliveries starting September 2026, serving Amazon and others) and hundreds more from operators such as WattEV. Pricing stands at approximately $260,000 for the Standard Range and $290,000 for the Long Range before incentives.
Tesla Semi pricing revealed after company uncovers trim levels
Earlier in 2026, Tesla finalized production specifications that incorporated substantial updates. In February, the company detailed two variants designed for a full 82,000-pound gross combination weight.
The Standard Range offers about 325 miles of range with a 548 kWh battery and curb weight under 20,000 pounds. The Long Range delivers roughly 500 miles with an 822 kWh pack and a 23,000-pound curb weight. Both use three independent rear-axle motors producing up to 800 kW (about 1,073 horsepower), achieve energy consumption of around 1.7 kWh per mile, and support megawatt-class charging at up to 1.2 MW—recovering about 60 percent of range in 30 minutes through the MCS standard.
Additional refinements include a roughly 1,000-pound weight reduction versus earlier prototypes, improved aerodynamics, a 48-volt electrical architecture, electric power take-off up to 25 kW for refrigerated trailers, and fleet management software with over-the-air updates.
These advances position the Semi as a competitive option against diesel trucks on operating costs and performance. For Europe, adaptations such as lighting, cab configurations (including potential sleeper options), and regulatory compliance are anticipated.
With series production underway in Nevada and major fleet commitments secured, the upcoming IAA reveal will clarify timelines, European-specific specs, and pricing, potentially accelerating electrification of heavy-duty freight on both continents.
Investor's Corner
Tesla Robotaxi gets a massive upgrade in Nevada
Nevada regulators just approved a massive expansion of Tesla’s robotaxi fleet across the entire county.
Tesla’s robotaxi footprint in Nevada just grew by roughly 500 times in a single regulatory vote.
The Nevada Transportation Authority approved Tesla’s full Autonomous Vehicle Network Company permit on Thursday, clearing the way for the company to deploy up to 5,000 driverless vehicles across Clark County over the next 12 months. The decision came during a four hour general session meeting that Tesla investor Sawyer Merritt watched live and reported on X, noting the vote replaces the interim order that had limited Tesla to just 10 robotaxis on a narrow stretch of the Las Vegas Strip.
EXCLUSIVE: Tesla has just officially received approval for its full Autonomous Vehicle Network Company permit in Nevada, clearing the way for Tesla to launch a paid public Robotaxi service in Las Vegas.
This officially allows @Tesla to deploy up to 5,000 robotaxis over the next… pic.twitter.com/DPs5UtUlrE
— Sawyer Merritt (@SawyerMerritt) August 20, 2026
That earlier cap, covered here after it surfaced on August 13, came with restrictions that looked stricter than what Tesla runs in Austin: a 45 mph speed ceiling, no airport pickups, and a geofence confined to the Strip corridor. The new approval extends Tesla’s operating authority to all of Clark County, with room to request an even wider geofence across the state.
Tesla representatives at the meeting said they have no intention of putting 5,000 cars on the road right away. Commercial rides are expected to start within 30 days, pending vehicle inspections, insurance filings, and fare approval, the standard steps every robotaxi operator in Nevada has had to clear.
Tesla’s own Robotaxi account replied to the news with a short line, The golden future is upon us.
The timing lines up with Tesla’s broader robotaxi push this month. The company is preparing to open Cybercab rides to the public in Austin as soon as this month, and it opened a sweepstakes for riders to win a seat at the launch event. Tesla filed its original application for a 5,000 vehicle Nevada fleet back in June, a request regulators trimmed to 10 vehicles when they issued the interim order in July. Thursday’s vote effectively grants the number Tesla asked for from the start.
Zoox, the Amazon owned robotaxi operator, has run in Nevada since 2025 and was capped at 100 vehicles before Thursday’s decision. Tesla’s new ceiling puts it well ahead of that comparison on paper, though the company has said its actual fleet size will depend on how quickly FSD v15 rolls out, the software update executives have called the gateway to scaling unsupervised robotaxi operations nationwide.
Tesla will resolve massive China recall with stickers and a software update
Tesla Semi is officially headed to Europe
