Last updated on October 18, 2023
In pre-market trading, Tesla shares experienced a decline after the company announced price cuts in China. This move comes amidst a price war in the country, which is the world’s biggest car market. The long-range Model Y saw a price reduction of 14,000 Chinese yuan, or 4.5%, while the Model Y performance sedan had a markdown of nearly 4%. Additionally, Tesla offered insurance subsidies to domestic buyers totaling around 8,000 yuan ($1,100.00).
According to the China Passenger Car Association, domestic vehicle sales fell by 2.6% last month compared to July of the previous year. Tesla experienced a significant decline in sales as well, with 64,285 vehicles sold, marking a 31% decrease from June and a 16.5% slide from July of the previous year. Although Tesla has made adjustments to prices, the Model Y midsize SUV is still down by approximately 24% since the beginning of the year in the United States, while the popular Model 3 sedan has seen a 14% decrease. Tesla CEO Elon Musk stated that sacrificing margins in order to produce more vehicles is a sensible strategy and emphasized the company’s focus on gaining market share rather than improving profit margins for the rest of the year.
Keywords: Tesla, TSLA, pre-market trading, price cuts, China, car market, Model Y, Model 3, sales, Elon Musk, market share, profit margins.
Hashtags: #Tesla #TSLA #premarkettrading #pricecuts #China #carmarket #ModelY #Model3 #sales #ElonMusk #marketshare #profitmargins.
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