Today, Tesla in China has reduced the prices for the Model 3 and Model Y, for all variants in the model lineups. This means that now, the base version Model Y is now eligible for any government subsidies, due to its costing less than 300,000 yuan (£36,500). This price reduction is only taking place in China, with prices in the UK and the rest of Europe remaining the same.

In the UK, the Model 3 with rear-wheel drive starts at £48,490 and in Germany for example, it is from €53,290. Model Y in the UK is from £51,990 and in Germany, it is from €56,190.

The price reductions in China are pretty significant across the board, with the Model 3 costing from 265,900 yuan (£32,390) which is 14,000 yuan (£1,700) less than before. Model Y is also now below 300,000 yuan too for the first time, also allowing it to be eligible for any government subsidies.

In China, the base spec Model Y is now available in back and silver as a no cost option, before the silver cost 8,000 yuan (£1,000) extra