Tesla’s Desperate Gamble: Musk’s EV companies announce the second round of discounts in China: Tesla appears to be determined to instigate a price war in China. In China, the EV company owned by Elon Musk has cut prices once more. Along with various additional advantages, Tesla is charging its Chinese customers a second astronomical fee.
Tesla appears to be determined to instigate a price war in China. In China, the EV company owned by Elon Musk has cut prices once more. Along with various additional advantages, Tesla is charging its Chinese customers a second astronomical fee.
It appears like Tesla is determined to incite a price war in China. This week, Tesla chose to lower its costs once more in China, which has caused some people to wonder what Elon Musk and his EV firm are actually up to.
The costs of the Model S sedans and Model X SUVs that the American EV manufacturers now have in stock have been reduced by as much as 70,000 yuan (about $9,600 in US dollars). On Wednesday, the information was released via their official WeChat account.
Tesla already reduced the cost of the Long Range and Performance variants of the Model Y SUV by 14,000 yuan just two days ago.
Additionally, through the end of the following month, they will continue to offer an insurance subsidy for the Model 3 sedan’s base model.
The world’s largest car market may see increased competition as a result of these price reductions. Other automakers like BMW and the Mercedes-Benz Group would feel pressure from this to lower their prices as well.
In addition to these reductions, Tesla is still offering certain additional benefits, such as free fast-charging credits and demonstrations of its upgraded Autopilot system for those who recommend others.
On Wednesday, shares of Tesla fell 1.3% at the start of premarket trading. Since CEO Elon Musk issued a warning about potential future price cuts on the company’s results call on July 19, the stock has dropped by 20%.
The number of Tesla deliveries from its factory in China plunged by 31% in July, reaching its lowest level of the year.
The automaker has previously stated, without going into detail about the adjustments, that the third quarter will see a decline in its overall production owing to factory renovations. The upgraded Model 3 car is expected to start manufacturing soon, according to expectations.
Read also: Tesla cuts Model S, X prices by over 6% in China.