China is the largest market in the world for both new autos and electric vehicles, and electric vehicle manufacturer Tesla (Tesla stock) has lowered costs in China. Investors are experiencing anxiety.
On Sunday, the Chinese version of Tesla’s website displayed reduced costs for the purchase of Tesla automobiles. For example, the base price of a Model Y is now 289,000 Chinese yuan, which is around $39,500. A short while ago, the base price of the Model Y was around $43,000.
The prices of the majority of the models and model variants appear to have decreased to a range that falls between 15,000 and 30,000 Chinese yuan, which is around $2,700 for each model.
In response to a request for comment on price, Tesla ( NASDAQ:TSLA ) did not provide a response.
Tesla Stock Performance
During trading on Monday morning, Tesla shares had a loss of 7.4% . The S&P 500 had a loss of 0.2%, while the Nasdaq Composite saw a loss of 1.3%.
According to a statement made by Citi analyst Jeff Chung in a research that was released on Monday, “We expect that this price-cut approach will produce overall negative sentiment” for the industry. It worries him because prices are falling at the same time as overall sales are declining. In addition, there is a normal decline in sales of electric vehicles (EVs) during the first three months of the year when government incentives for their acquisition are eliminated.
Chung, on the other hand, does not cover the shares of Tesla ( NASDAQ:TSLA ). Chung also covers other Chinese electric vehicle manufacturers.
Investors are on edge because they are uncertain about what is taking place in China, which is making them apprehensive. In addition, there has been a lot to process in recent times.
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