Tesla cut prices in China and fell sharply on Wall Street

Tesla cut prices in China and fell sharply on Wall Street

The price decline may be the result of slowing demand for electric vehicles in China, after recent media reports suggested lead times for Tesla products have shortened.

“China is experiencing a kind of recession,” CEO Elon Musk said last week.

Analysts at Bank of America believe that Tesla was forced to make a move due to “the recent slowdown in the growth of electric vehicle penetrationand the lowest TSLA wait time for Model 3/Y after monthly capacity increased to over 80k after July.”

“We expect Model 3/Y volume sales to improve as: (1) Model 3 entry price is down 4.7%, and Model Y entry price is down 8.9%; (2) TSLA’s price change has been long awaited by Chinese consumers, so they were on standby before,” they said in a client note.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts