tesla (TSLA) will reduce the prices of its two models, Model 3 and Model Y, in China, the EV giant announced overnight. TSLA stock fell on Friday morning, extending its recent decline.
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The Model 3 rear-wheel drive now costs RMB 245,900 ($34,639), down 5.9% from RMB 261,400 ($36,822). The Model 3 All-Wheel Drive is priced 3.9% lower, from RMB 297,400 to RMB 285,900.
Tesla will reduce the price of the Model Y RWD by 2.8% from RMB 266,400 to RMB 258,900. Model Y LR has a price reduction of 2.1% from RMB 306,400 to RMB 299,900.
Tesla did not adjust the Model Y’s performance in China, leaving it priced at RMB 363,900.
Most of Tesla’s sales in China are the base Model Y.
Tesla appears to no longer offer the RMB 6,000 insurance subsidy for Model 3 vehicles in stock.
Tesla China’s sales were strong in 2023, reaching a new record in the fourth quarter. However, competition is fierce in China, and rival companies are constantly introducing new models with advanced technology and aggressive prices.
lee auto According to local media, (LI) has announced significant reductions in its lineup. This comes ahead of a facelift of the existing model scheduled for March. But Li Auto also faces competition from companies such as Huawei-backed Aito.
tesla stock
Tesla shares fell nearly 3% in premarket trading.
On Thursday, the stock fell 2.9% to 227.22, extending the weekly decline to 4.3%. TSLA stock fell below the 200-day line for the first time since November 13th.
Tesla stock still has a buy point of 278.98 from its double-dip base, but the pattern is becoming increasingly awkward.
Li Automobile shares fell 3%.
Follow Ed Carson on thread @edcarson1971 and on X/Twitter. @IBD_ECarson For the latest stock market updates and more, contact Bluesky at @edcarson.bsky.social.
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