On March 14, 2024, pedestrians walked past a Tesla store in Shanghai, China.
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Tesla Shares fell in pre-market trading on Monday, while Chinese stocks ideal car The company’s electric vehicle prices plunged to an 11-month low after the two companies slashed prices of electric vehicles across markets amid fierce competition.
US electric car maker Tesla lowers starting price Model 3 in China The price reportedly dropped to 231,900 yuan ($32,000) on Sunday, a decrease of 14,000 yuan Reuters. The report also said it has slashed prices in other major markets such as Germany.
At the same time, Li Auto said on its official website that its L7, L8, L9 and newly launched MEGA SUV models have all had price cuts. Weibo account on Monday. According to reports, the price reduction of these models is as high as 30,000 yuan.
A CNBC check of the Tesla and Li Auto websites on Monday showed their vehicles were listed at updated prices.
Shares in Hong Kong-listed Li Auto fell 8.3% in Monday trading, hitting their lowest level in 11 months, while other Chinese electric car makers also fell – Nioh dropped by 1.7%, Xpeng Discount 1.9% and BYD down 0.2%.
The price cuts come as competition in China’s electric vehicle sector intensifies, with local automakers seeking to overtake U.S. rival Tesla with advanced technology and competitive prices.
Eugene Hsiao, head of China equity strategy at Macquarie Group, said in a research note over the weekend that all China’s largest electric car manufacturers have one goal in mind – “to seize the crown from Tesla.” At the same time, it was pointed out that Tesla is the most competitive electric vehicle manufacturer in China.
Xiao said price discounts are just one aspect of various strategies adopted by China’s large electric vehicle manufacturers to survive the “coming wave of industry consolidation.”
Chinese smartphone maker Xiaomi launched its SU7 electric car earlier this month, which sells for about $4,000 less than a Tesla Model 3.
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