January 28, 2023

Taylor Daily Press

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Tesla shares rose 7 percent at the opening, after Elon Musk’s car company cut prices in China Mobility

Tesla shares fell again on Friday. It fell more than 7 percent at the opening on Wall Street, after it was announced that the automaker would cut prices in China again, for the second time in just ten weeks. In China, the electric vehicle market is experiencing fierce competition.


Last updated:
06-01-23, 16:51

ANP, Belga, Yahoo! finance

The stock has been under pressure for months. In addition to the competition in the Chinese market, investors are also concerned about the management of CEO Elon Musk, who also acquired the social network Twitter. Tesla shares fell more than 7 percent on Friday when the stock market opened, after which the loss eased somewhat to around 4 percent. In the past year, Tesla’s share price has already lost about 65 percent.

For example, the price of the China-made Model Y has been cut by 10 percent to approximately 260,000 yuan, or about 36,000 euros. According to the American website of the car brand, the starting price there is approximately 66 thousand dollars, which is more than 62 thousand euros. The Tesla Model 3 is 30 percent cheaper in China than in the United States after price cuts.

In addition to the price reduction, Tesla also introduced a number of more expensive models, namely the Model S and Model X respectively. Chinese customers pay more than 1 million yuan for this, nearly 140,000 euros. With the introduction of these new models, the automaker wants to take part in the premium segment of the electric vehicle market in China.

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Pictured at the Shanghai Auto Show in Shanghai, China. Archive the photo. © Reuters

Tesla also cut prices in China last year to boost sales of its cars. Since 2019, Tesla has also located production of the Model 3 and Model Y in Shanghai, China. The company shipped more than 700,000 vehicles from that plant last year, accounting for 54 percent of Tesla’s global sales.

Tesla lowers prices due to fierce competition

Tesla is forced to lower its prices in China due to the fierce competition there. China is one of Tesla’s most important markets, but Americans are increasingly influenced by Chinese electric vehicle manufacturers like BYD. In addition, several manufacturers have been added, such as Nio and Xpeng. They are working hard to bring more and more models to the market.

From 1.2 trillion (!) To “barely” 400 billion dollars in one year. What’s going on with Tesla? (+)

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