Can Tesla cut prices on all its models in China starting today? –hualong.com

In the past two days, news of Tesla’s successive price cuts has become a hot topic.

According to reports, on April 20, Tesla announced price cuts in the U.S. market, and on April 21, all Tesla models in China also started price cuts, setting off a new round of price war.

On April 21, Tesla China’s official website showed that the price of Model Y dropped to 249,900 yuan, the price of Model Y long-range version dropped to 290,900 yuan, and the price of Model Y high-performance version dropped to 354,900 yuan. . The price of the Model S has dropped to RMB 684,900, and the price of the Model S PLAID version has dropped to RMB 814,900. The price of Model X has dropped to RMB 724,900, and the price of Model X PLAID has dropped to RMB 824,900.

Tesla has been “showing off its strength” in the Chinese market before.

According to reports, at the beginning of this month, against the backdrop of many domestic car brands in China announcing price cuts, Tesla China announced a price increase: the price of the domestically produced Model Y was increased by 5,000 yuan. At the same time, the previous 8,000 yuan existing car insurance subsidy policy and the car paint exemption policy of up to 10,000 yuan will also expire on March 31. Based on this calculation, including insurance subsidies, etc., the actual price increase of Model Y this time is as high as 23,000 yuan.

However, less than a month after the price increase, Tesla finally couldn’t stand it anymore and lowered the price. According to analysis, behind this is the fact that Tesla is facing greater sales growth pressure and the global new energy vehicle price war is intensifying.

On April 20, Tesla’s US official website showed that the price of Tesla Model Y was reduced to US$42,990, the price of Model Y long-range version was reduced to US$47,990, and the price of Model Y high-performance version was reduced to US$51,490. The Tesla Model S is down to $72,990, and the Model S PLAID is down to $87,990. The price of Tesla Model X has dropped to $77,990, and the price of Model X PLAID has dropped to $92,990.

It is worth noting that Tesla announced on the 15th that it would lay off 14,000 people worldwide, more than 10% of its total employees. Tesla CEO Musk said in an email that this was a difficult decision. He said the move will keep the company lean, innovative and into its next growth cycle.

It is reported that the scope of Tesla’s layoffs is not limited to North America, but also involves Europe and Asia. Among them, in the Chinese market, the scope of layoffs involves multiple departments, and some departments have already completed layoffs.

The market generally believes that the main reason for the layoffs is the slowdown or even decline in sales growth. According to Tesla’s 2024 first quarter sales data, the company delivered a total of 386,800 vehicles globally during the reporting period, down 8.5% year-on-year and down 20.2% from the fourth quarter of last year, setting a new low in the past five quarters. This is also the first time Tesla’s quarterly sales have fallen below the 400,000-vehicle mark since the third quarter of 2022.

For the decline in sales, Tesla attributed the reasons to the renewal of Model 3, the red sea crisis causing shipping diversions, and the arson damage to the German factory.

As of the 19th, Tesla’s stock price closed at $147.05, which has fallen by more than 40% this year, and Musk’s net worth has also plummeted.

Recently, analysts from about 15 institutions have lowered their 12-month target prices for Tesla. According to industry analysts, Tesla’s sales may decline again in the second quarter.

This wave of big price cuts reveals the pressure Tesla is under, and may be seen as a helpless move to face the market and boost sales.

Text丨Reporter Lin Liai

Original title: Tesla is cutting prices on all its models in China starting today, can’t you stand it anymore?丨See the world