Tesla Implements Further Price Reductions in China as Competition Heats Up
Tesla (NASDAQ: TSLA) has once again taken steps to lower the prices of its vehicles in China. Following the introduction of a promotional campaign that offers a 4% discount on its Model Y long-range and performance variants until September 30th, the electric vehicle (EV) leader is generating attention once more. This time, the spotlight is on the premium Model S and Model X editions, which are now subject to price reductions of up to 6.9% in China.
As disclosed on the company’s official Weibo account, the luxurious Model S sedan now boasts a reduced price of 754,900 yuan ($103,463), down from its previous 808,900 yuan. Similarly, the price of the Model X SUV has been revised to 836,900 yuan ($114,702), a decrease from the prior 898,900 yuan.
However, this trend isn’t unique to Tesla. Faced with uncertain demand outlooks and macroeconomic factors, various EV manufacturers have initiated time-limited promotional campaigns for their vehicles (such as Leap Motor and SAIC GWM Ora), or have made related price adjustments (such as NIO providing charging subsidies).
Morgan Stanley analyst Adam Jonas predicts that the pricing competition is expected to “intensify” during the third quarter.
The backdrop of subdued demand in China, combined with the price reductions, has had a negative impact on Tesla’s stock price, resulting in a decrease of over 25% in the past month.
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