Electric automaker Tesla has reduced prices in China for the second time in less than three months.
Lillian Suwanrumpha | Getty Images
The company first slashed prices in China in late October 2022 — dropping prices of Model 3s and Model Ys by about 9.4%, CNN reported. Now, the price cuts are even deeper as Tesla struggles to maintain sales in China amid shrinking demand. The starting price for the Tesla Model 3 has been reduced by a further 13.5% to 229,900 yuan ($33,515), and the starting price for the Model Y has dropped by another 10% to 259,900 yuan ($37,889), according to CNN calculations.
According to Reuters, between the discounts and incentives Tesla is offering to Chinese buyers, prices are down between 13% and 24% overall since September.
Related: Elon Musk Is the First Person to Lose $200 Billion
Following the news of the price cuts, Tesla stock fell by 7%, marking its worst day on Wall Street since August 2020. This time last year, Tesla stock was trading at around $342. As of Friday morning, it’s down to $107.
Although Tesla was once the leader in the electric vehicle market, demand for its cars has waned as other automakers have entered the space with more affordable models.
Related: ‘Do Yourself A Favor and Get A Polestar’: Tesla Owner Says He Was Trapped in a Tesla Model Y
The price cuts came after the company reported a weak production-to-delivery ratio for Q4 of 2022, producing 34,000 more vehicles than it delivered, per Yahoo Finance. With excess inventory and shrinking demand, it’s possible Tesla prices might decline even further.
Madeline Garfinkle
Source link
