Tesla Stock Falls Deeper After Making Cars Cheaper in China
Tesla Slashes Prices in China, Prompting Investor Concerns
Tesla's stock faced a decline on Monday as the electric vehicle manufacturer implemented price cuts for some of its vehicles in China, sparking renewed competition in the world's largest automobile market.
The company revealed a significant price reduction for its Model Y in China, announcing an immediate discount of 14,000 yuan ($1,929) on two of its models. The long-range version will now be priced at 299,900 yuan ($41,340), while the performance model's cost will be adjusted to 349,900 yuan ($48,200), as indicated by Tesla's posts on Chinese social media and its official website.
These changes represent reductions of 4.5% and 3.8%, respectively.
Furthermore, Tesla stated that purchasers of the Model 3 will receive a subsidy of up to 8,000 yuan ($1,107) if they acquire the vehicle through a preferred insurance provider before the end of September. The company's latest pricing strategy has raised concerns among investors, as it reignites competition and intensifies the ongoing price war within China's automotive market.