Apparently Elon Musk experiencing a small crisis in China. It’s because Tesla decided to reduce the initial prices of Model 3 and Model Y to 9% in the country. The change in pricing policy is intended to anticipate a possible drop in demand in the local market, the largest in the world.

Tesla changed the price on their website last Monday (24). In addition to lowering prices, Musk’s company has begun offering incentives to shoppers that include insurance.

The price of the Model 3 sedan fell to 265,900 yuan ($36,727) from 279,900, while the price of the Model Y SUV fell to 288,900 yuan from 316,900.

Elon Musk, CEO of Tesla, stated that “kind of recession“Happens in China and Europe. Musk also said demand was strong in the current quarter and said he expects Tesla to be “recession resistant“.

One of China’s leading corporate-focused banks, China Merchants Bank International (CMBI), commented that Tesla price cuts could increase competitiveness in the Chinese market. This poses a risk to local EV manufacturers as sales in the industry are expected to decline in 2023.

“The price cut highlights the potential price war we’ve been highlighting since August.Shi Ji, an analyst at CMBI, said.

It is important to note that electric and hybrid vehicle manufacturers have raised prices in recent years due to the higher cost of raw materials. At the same time, Tesla has also made cuts to accommodate Chinese regulations such as government subsidies.

Tesla breaks car delivery record

In a recent report released by Tesla, the tech giant revealed that it broke the record for the most vehicles produced in a single quarter in the company’s history. From July to September, 365,923 electric vehicles were built.

The number shows an increase of 54% over the same period last year. At the time, Tesla produced “only” 237,823 electric vehicles. Production also showed an increase compared to the other period of this year. In the second quarter, the automaker built 258,580 vehicles, down 41.5% from the previous quarter.

The truth about Elon Musk’s Tesla mobile phone
The Tesla Pi smartphone, or Tesla Phone, as it has come to be known on the Internet, never existed because it is making way for a much more amazing device.

Via: Reuters

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