Learn of Today: Tesla cut prices in China. What does it mean?
Tesla slashed prices on its Model 3 and Model Y cars in China, the world's largest auto market, on Thursday.
The cut comes after disappointing sales numbers came out on Thursday, with the electric vehicle pioneer delivering a five-month low 55,796 cars in China in December, a 44% decease from the month before, according to the China Passenger Car Association.
The starting price of the Model 3 has dropped to 229,900 yuan ($33,427.84) from 265,900 yuan, and the Model Y has dropped from 288,900 yuan to 259,900 yuan, the website shows.
China's decision to end more than a decade of subsidies for buying electric vehicles has also forced automakers including Tesla to deepen discounts to maintain sales as demand in the world's largest market slows.
$Tesla(TSLA.US$ shares have been hammered over the past year, down about 72% from their peak in November 2021. The stock closed down 2.9% on Thursday.
Globally, Tesla delivered 405,000 vehicles in the fourth quarter, about 13,000 less than the consensus estimate of 418,000.
Intense competition in mainland China and possibly in the United States in the future, as well as weak global demand due to recession fears, combined to weigh on Tesla, may have contributed to the new round of price cuts in China. There is a view that Tesla is trying to boost sales and thus reduce costs by increasing factory capacity utilization, and to optimize its core indicator—profitability.
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snoopy123 : maybe need to compare with the Chinese EV delivery numbers and prices to read this more holistically..
Ixy The Cat : Feeling the heat from Chinese EVs, BYD in particular. Got inventory to clear because he has to fund the Twitter black hole.
AIMIN : Only Tesla knows China well; ordinary people are out of money
RJBoy : This is another sign that demand is falling for products across the board.
abombs33 :
RDK79 : Finance 101
hunter_Killua : @PM Ivylooklook
hunter_Killua : @MooPM_taddy@PM Ivy