Tesla cuts prices, promises higher quality

US electric carmaker Tesla has announced sharp price cuts for its latest models in China.

The Tesla Model Y now has a starting price of 339,900 yuan (US$52,262) for its long range sedans, compared with 488,000 yuan previously. And its performance model is now 369,900 yuan, down from 535,000 yuan.

The Model 3, which targets lower-end car buyers, also saw its price further drop by 79,900 yuan for its performance model after four price cuts last year.

“The prices of our cars have become very competitive, and we promise higher quality,” the company said in a statement sent to Shanghai Daily.

Such enticing prices have led to a wave of purchases during the New Year holiday. The company's website, its sole sales channel, reportedly crashed as a result of so much traffic.

But for customers who have already bought Teslas, feelings are mixed.

“Why are there  so many price cuts by Tesla,” said an owner surnamed Jiang in Shanghai. “The price cuts are so deep that they hurt the hearts of owners of Teslas like me.”

Tesla's Model 3 surpassed many luxury brand models with 22,000 vehicles sold in November, ranking first in terms of sales.