Shares of electric vehicle maker Tesla (TSLA) are down 3% on news that the company is
cutting prices in China.
Over the weekend, Tesla lowered the price of its Model 3 and Model Y vehicles in China, one of
the company’s biggest markets globally.
The starting price for the Model 3 electric sedan was reduced to 265,900 Chinese yuan
($36,615 U.S.) from 279,900 yuan previously.
The Model Y electric sports utility vehicle (SUV) now costs 288,900 yuan versus the previous
price of 316,900 yuan.
Tesla’s price cuts partly reverse some of the increases the company implemented earlier this
year to compensate for higher raw material costs. The price cuts also come as economic data
points to signs of a recession in China.
The Chinese economy continues to struggle with strict COVID-19 measures and lockdowns.
Third-quarter gross domestic product (GDP) rose 3.9% from a year ago, beating expectations,
but remains well below the country’s official target of 5.5% quarterly growth.
Tesla, which operates a massive manufacturing plant in Shanghai, delivered 343,000 vehicles
for the quarter ended September 30, missing analyst expectations. The company does not
break out how many cars were delivered in China.
Tesla’s stock is down 46% this year at $214.44 U.S. per share.
