🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Tesla cuts prices in China for second time in three days as price war fears mount

Published 08/16/2023, 06:36 AM
© Reuters

Investing.com -- Tesla (NASDAQ:TSLA) has announced its second price cut in China in three days, further fueling worries of a potential price war in the country's lucrative electric vehicle (EV) market.

The Elon Musk-led EV giant lowered the price of its Model X sport utility vehicles and Model S sedans in inventory by as much as CNY 70,000 (CNY 1 = $0.1371), a statement on the company's WeChat account read.

Shares in Tesla slipped in premarket U.S. trading on Wednesday.

On Monday, Tesla slashed prices for its Model Y long-range and performance editions in China by CNY 14,000, reinvigorating concerns that the firm's rivals in the world's biggest auto market will also be persuaded to roll out similar moves.

Tesla has been racing to secure its share of a fiercely competitive Chinese market. The firm's shipments in the country slipped by 31% in July, touching their lowest level this year, while global production is expected to fall in the third quarter.

Evercore ISI analysts predicted in a research note that comparable targeted price reductions might be seen in the U.S. and Europe.

During a call with analysts last month, Musk suggested that his company would continue to reduce prices as it has done throughout 2023, even if it takes a toll on profit margins. He argued the value of Tesla models will increase once its autonomous driving program is perfected.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.