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

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