Tesla collapses in New York amid price war in China

Listen to the audio version of the article

Tesla has cut prices by nearly $2,000 on all its models in China, following price cuts in the United States, as it grapples with declining sales and an intensifying price war for electric vehicles (EVs), particularly once morest cheaper Chinese EVs.

The Elon Musk-owned electric vehicle maker has cut the starting price of the facelifted Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan, according to its site.

Tesla has made similar cuts to the starting price of the Model Y, now 249,900 yuan, the regular version of the Model S at 684,900 yuan, and the Model S Plaid at 814,900 yuan. The regular Model X now costs 724,900 yuan and its plaid variant 824,900 yuan.

The automaker on Friday cut U.S. prices of its Model Y, Model X and Model S vehicles by $2,000. On Saturday it cut the price of its Full Self-Driving driver assistance software from $12,000 to $8,000 in the United States.

The collapse of Tesla

Tesla collapses in New York in the wake of the new round of the price war in China with fierce competition with local producers of electric vehicles which is pushing sales prices downwards and players to focus more decisively on exports. Furthermore, Li Auto closed trading on the Hong Kong Stock Exchange at -8.33%, at the lowest level of the last 11 months, discounting the downward adjustment of the price lists. Tesla, in particular, has cut the prices of its Model 3 by around $2,000 and Li Auto, as for its models such as L7, L8, L9 and the recently launched MEGA SUV, has reduced them by 6-7%. The other electric car producers such as Nio (-1.66%) and Xpeng (-1.85%) ended up in tension, while the world leader BYD limited the damage to -0.20%. Chinese smartphone maker Xiaomi, which launched its SU7 electric car earlier this month, has priced it regarding $4,000 less than Tesla’s Model 3, while also providing a much longer driving range.