Tesla (TSLA) is cutting prices for the Model 3 and two Model Y models in China, the electric car giant announced overnight. TSLA stock fell on Friday morning, extending its recent decline.
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The rear-wheel drive Model 3 is now priced at CNY 245,900 (US$34,639), down 5.9% from CNY 261,400 (US$36,822). The all-wheel drive Model 3 fell 3.9% to CNY 285,900 from CNY 297,400.
Tesla has reduced the price of the Model Y RWD by 2.8% to CNY 258,900 from CNY 266,400. The Model Y LR is reduced by 2.1% to CNY 299,900 from CNY 306,400.
Tesla has not adjusted the price of the Model Y in China, which remains at CNY 363,900.
Most of Tesla's sales in China are for the base Model Y.
Tesla apparently no longer offers the CNY 6,000 insurance support on Model 3 stock vehicles.
Tesla sales in China were strong in 2023, setting a new record in the fourth quarter. But China enjoys fierce competition, as competitors continue to introduce new models with advanced technology and competitive prices.
Lee Otto (for me) announced major reductions in its lineup, according to local media. This comes ahead of an expected facelift for its current models in March. But Li Auto also faces competition from Huawei-backed Aito and others.
Tesla shares
Tesla stock fell 3% in pre-market action.
Shares fell 2.9% to 227.22 on Thursday, extending their weekly loss to 4.3%, amid a variety of headlines. TSLA stock broke below its 200-day line for the first time since November 13.
Tesla stock still has a buy point of 278.98 from a double-bottom base, but the pattern is looking increasingly strange.
Li Auto shares fell 3%.
Please follow Ed Carson on topics at @edcarson1971x/Twitter at @IBD_ECarson And Bluesky V @edcarson.bsky.social For stock market updates and more.
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