Tesla shares fell during trading on Monday to their lowest level since June 2021 after the company announced a decline in car sales in China due to increased competition and economic pressure.
And Bloomberg pointed out that Tesla earlier announced a price cut for its locally produced Model 3 sedan, the cheapest among its cars, by 5% to 265,900 yuan ($36,774).
It also cut the base price of the “Model Y” sports utility vehicle (SUV) by 8.8% to 288,900 yuan.
This sent Tesla’s share price down 7.4% to $198.59 on the New York Stock Exchange on Monday, its lowest level in 16 months.
Prices of new electric vehicle manufacturers listed on the US stock exchanges New Ink, Xpen and Le Auto have fallen by at least 23%.
Bloomberg said Tesla’s price cuts reflect the hard times the company and its international counterparts China’s electric car makers, led by BYD, posted record sales of 20,973 vehicles last month.
Foreign companies also face competition from Chinese startups such as Niu and Xiping, which have increased the number of models they produce.
Local Chinese companies accounted for about 80% of all electric vehicle sales in China in the first seven months of this year, according to the China Passenger Car Association.
Source: dpa + “Bloomberg”