On Friday, Tesla (NASDAQ: TSLA) escalated its price wars in China by slashing its car prices further, according to a Reuters report. The EV major reduced the prices for all versions of its Model 3 and Model Y cars in China in the range of 6% to 13.5%, the report stated.
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This latest round of price cuts in China means that TSLA has now reduced its prices between 13% and 24% from September. This is the second round of price reductions in China after October.
A tough macroeconomic environment, months of strict lockdowns, and now raging COVID cases have meant that the demand for TSLA’s cars is slowing down. In addition, competition is intensifying for TSLA from Chinese EV players like NIO (NIO), Li Auto (LI), and XPeng (XPEV).
These factors have led to TSLA’s car sales in China slumping in the month of December, its lowest level in the past five months.
Wall Street analysts are cautiously optimistic about TSLA stock with a Moderate Buy consensus rating based on 20 Buys, 10 Holds and two Sells.
