May 26, 2024

Image for article titled Tesla slashed its prices even further in China

Photo: Florence Lo (Reuters)

Tesla is deepening its price cuts across its models in China as the EV maker struggles to get its sales up and increase its competition with its Chinese rivals.

The company slashed prices by nearly $2,000 (14,000 yuan) for its latest Model 3 to about $32,600 (231,900 yuan), according to CNBC. It also cut its Model Y prices by a similar amount.

The decreases come after Elon Musk’s Tesla did the same thing in the U.S.: the carmaker wiped $2,000 off the price of its Models Y, X, and S cars. It also discounted its self-driving technology in the U.S. from $12,000 to $8,000.

On Friday, Tesla recalled 3,878 Cybertruck electric pickups to address accelerator pedals that can dislodge and become trapped, increasing the risk of a crash. The defect applied to all Cybertruck vehicles made between November 13, 2023, and April 4, according to documents filed with the U.S. National Highway Traffic Safety Administration (NHTSA).

Tesla’s bad 2024

Tesla is having a very rough 2024, although casual investors and observers don’t really have to look back further than just the past few days, which have wrecked the company’s stock price.

Tesla stock hit a new 52-week low on Thursday after Deutsche Bank analysts joined others in slashing their ratings and price targets for the electric vehicle maker. Shares had already been sinking after CEO Elon Musk last Sunday announced that at least 14,000 workers would be laid, according to a leaked memo to Tesla’s 140,000 global employees. The slew of layoffs confirmed previous concerns that Tesla is grappling with an EV demand problem, according to JPMorgan analysts.

Will Gavin contributed to this article.

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