Tesla Suffers EVs Price Cuts and German Plant Shutdown
Tesla trims starting prices of Model 3 and Model Y , yet again. While Bloomberg says Red Sea conflict may disrupt factory output near Berlin!
Tesla Inc. shares dropped after the carmaker cut prices again in China and said its lone European factory may be disrupted by attacks in the Red Sea.
Tweet on Tesla’s EVs prices
@Tesla shares dropped after the carmaker cut prices again in China and said its European factory will be disrupted by attacks in the Red Sea.#tesla #ev #china #Germany pic.twitter.com/vVuu0A1qlk
— The_Journalbiz (@the_journalbiz) January 12, 2024
Bloomberg chart
The company reduced the starting prices of the Model 3 sedan by 5.9% to 245,900 yuan ($34,300) and marked down the Model Y sport utility vehicle by 2.8% to 258,900 yuan, according to its website.
Hours earlier, Tesla told Reuters it will suspend most production at its Model Y plant near Berlin from Jan. 29 to Feb. 11, as suppliers shift transport routes in response to attacks on vessels in the Red Sea.
Tesla fell as much as 4.2% as of noon New York time Friday, putting the shares on course for an 11th decline in 12 sessions. The stock slumped Thursday after Hertz Global Holdings Inc. announced plans to sell off a third of its US electric-vehicle fleet.
Growth in China’s EV market is projected to slow for a second year in 2024 as the nation’s patchy recovery from the pandemic weighs on consumer sentiment. Shipments of battery-electric and plug-in hybrid vehicles to dealers are projected to increase 25% to 11 million units this year, the China Passenger Car Association said this week.
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This compares to 36% growth in 2023 and 96% in 2022.
Tesla sold 1.81 million vehicles globally in 2023, with over half shipped from its Shanghai factory.
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