Tesla Plans Cheaper Model Y and Self-Driving Upgrades to Regain Market Share in China
- THE CHINA NOW
- Mar 21
- 3 min read

Summary
Tesla plans to introduce a cheaper version of the Model Y, which will be 20% less expensive than the current models.
The company is also enhancing its self-driving technology in China by collaborating with Baidu for better integration with local map data.
Tesla’s market share in China has dropped significantly, from over 16% in 2022 to just 4.3% in February 2025.
Tesla, the global electric vehicle leader, is making strategic moves to regain its competitive edge in the Chinese market, which has seen a significant downturn in sales. The company is set to launch a cheaper version of its popular Model Y in China, with a price cut of approximately 20%. This move is part of Tesla’s broader strategy to combat the fierce competition from local Chinese electric vehicle manufacturers, which have rapidly advanced in both price and technology.