Tesla Cuts Prices in China Again. The Stock Is Tumbling. -- Barrons.com
Tesla has cut the price of its cars in China again after deliveries fell sharply in December. The stock was more than 5% down in early premarket trading Friday.
The electric vehicle maker's Model 3 is now priced at 229,000 yuan, or around $33,000, according to the company's website, while the Model Y has been reduced to 259,900 yuan ($37,886). In October, Tesla cut the price of a Model Y in China to about $39,500 from $43,000 earlier in the year, while a Model 3 was recently priced at around $38,500 before the latest cuts.
Tesla (ticker: TSLA) announced that both models will be reduced by between 6% and 13% in a post on Chinese social media Friday, The Wall Street Journal reported.
The Model 3 in China is now around 30% cheaper than the same car in the U.S.
The price cuts come after the electric vehicle maker delivered 55,796 cars in December, down from more than 100,000 in November and 21% lower than a year earlier, according to data from the China Passenger Car Association Thursday.
It's the lowest monthly figure since July when production was suspended at its Shanghai plant for an upgrade.
The stock is already more than 10% down so far in 2023, as of Thursday's close.
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(END) Dow Jones Newswires
January 06, 2023 05:04 ET (10:04 GMT)
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