Tesla (TSLA) falls following latest round of price cuts; Li, Nio and XPeng also drop
Shares of Tesla (NASDAQ: TSLA) are down 5.76% in pre-market trading Friday after the electric vehicle maker announced a cut to car prices in China and other Asian markets as part of efforts to stoke demand for output from its Shanghai plant.
According to Reuters, Tesla dropped prices for all versions of its Model 3 and Model Y cars in China by between 6% to 13.5%. The starting price for Model 3 was cut to 229,900 yuan ($33,427) from 265,900 yuan. This latest cut means a 13% to 24% reduction in Chinese Tesla's prices since September.
The company cut Model 3 and Model Y prices in Japan by about 10% each. The price for the Model 3 rear wheel drive version is now 5.369 million yen ($40,091), down from 5.964 million yen. Tesla's price cuts in South Korea differed from model to model but ranged from about 6 million won to 10 million won ($4,725 to $7,875).
Tesla’s rivals have also been negatively affected by these latest rounds of price cuts as Li Auto (NASDAQ: LI), Xpeng (NYSE: XPEV) and Nio (NYSE: NIO) are all down 7.29%, 10.59% and 6.17% respectively in pre-market trading on Friday.
By Michael Elkins | [email protected]