Tesla reduces prices for these markets!
As sales decline, Tesla reduces prices in China and other Asian markets. Here are all details.
On Friday, Tesla lowered the price of electric cars in China for the second time in less than three months. With the sales going bad, company has decided to lower the prices which resulted in a bigger price war for battery-powered cars in the world's largest auto market. The company reduced prices for Asian markets to be specific. Tesla reduced the prices of its most popular electric vehicles, the Model Y and the Model 3, in Australia, South Korea, and Japan.
Tesla reduces prices for these markets!
According to a person with direct knowledge of the strategy, the coordinated price cuts were part of an effort to encourage demand for Tesla's production at its Shanghai factory, the company's single largest production hub. It was also the company's first major move since Tom Zhu, its lead executive for China and Asia and based in Shanghai, was appointed to oversee global output and deliveries.
After the price reductions, Tesla shares dropped 5.9% in premarket trading to $104. Even though Elon Musk has been mentioned a lot with Twitter these days, now it might seem like he changed his focus to Tesla a bit.
According to calculations made by Reuters, Tesla's prices in China, the company's second-largest market after the United States, have dropped by 13% to 24% since September due to "radical interest rate changes" that have affected the affordability of all cars, new and used.
