Tesla reflects price cuts | FinanceAffairs.com

Tesla reflects price cuts |  FinanceAffairs.com

Tesla raised the price of its Model Y Performance SUV by about $2,000 in China on Friday, Bloomberg reported.

In doing so, the electric car manufacturer reversed the price cuts that the company introduced just two months ago, in August.

According to Tesla’s Chinese website, the price of the advanced version of the Model Y is now 363,900 yuan, equivalent to $49,700. This represents an increase of 14,000 yuan from earlier in the week, after the company reduced the price from 363,900 yuan to 349,900 yuan in August.

However, prices for the long-range, rear-wheel drive Ys remained unchanged.

More expensive: Tesla has raised the price of the Model Y Performance in China, just two months after cutting the price. Here from the Internet of Things Expo in Wuxi, China. Image: Bloomberg

Faster to 100 km/h

In an attempt to attract more Chinese customers, Tesla earlier in October updated some features of the Model Y without changing the price at the time. Among the changes made by the most valuable car company in the world, it made it slightly faster from 0 to 100 km/h, to 5.9 seconds. In addition, the car got a new wheel design and additional ambient lighting.

Tesla also made an upgrade to its Model 3 sedan in September, which included increased range.

The auto giant has noticed increasing competition from local Chinese brands such as BYD, which aims to sell 3 million cars this year. In addition, Chinese brands such as Nio and Xpeng have also gained shares as they expand their model range.

See also  Marine stocks rose 60 percent

price war

A sure sign of increased competition is the price war that Tesla has waged over the past year. The company started the year by implementing significant price cuts in important strategic markets. When the company announced its first major price cut on January 13, it shocked the market, but it also set a sales goal of selling 1.8 million cars during the year, Bloomberg writes.

It now appears that the sales target is within reach, but the price of their cars has also been reduced by 30 percent.

In addition to the price hike in China, Tesla also raised the price of the all-wheel-drive Model Y Long Range by $500 in the United States. Which means the car now costs $48,990 on the other side of the pond.

Disappointing quarterly numbers

When Tesla presented its third-quarter numbers in mid-October, Americans disappointed the market. Earnings per share (EPS) came to 66 cents, below the FactSet consensus of 73 cents per share. stock. While revenues were about $1 billion less than expected, reaching $23.4 billion in the third quarter – $900 million less than consensus expectations.

Tesla delivered 435,059 vehicles in the third quarter, which represented a 7 percent decrease compared to the previous three months. The company still believes that it will deliver 1.8 million cars during 2023. This means that it will have to deliver 476,000 cars in the fourth quarter.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

Leave a Reply

Your email address will not be published. Required fields are marked *