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Tesla (TSLA) Undercuts Prices of Two Model Y EVs in China
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Tesla, Inc. (TSLA - Free Report) resumes price war in China to compete with local EV makers. The automaker cuts prices of two Model Y electric cars. It reduced prices of the Long Range model by 4.5% to 299,900 yuan and the Performance model by 3.8% to 349,900 yuan.
The EV pioneer is also offering an insurance subsidy of around $1,000 on Model 3 vehicles until the end of September. Tesla commenced the price war late last year to increase sales and acquire market share.
Per China Passenger Car Association, Tesla’s sales plunged 31% between June and July. On the contrary, Tesla’s biggest competitor in China, BYD Company Limited (BYDDY - Free Report) registered a 3% month-on-month increase in sales. Weakened sales might have persuaded the EV maker to cut prices.
Per Reuters’ analysis of CPCA data, Tesla’s market share recently hit a nine-month low.
Last month, automakers in China pledged not to disrupt fair competition with abnormal pricing, in which, Tesla, the only foreign automaker, joined them. But Tesla started offering a cash rebate to new customers the very next day, following which China Association of Automobile Manufacturers, the association that brokered the agreement, withdrew the pledge.
Earlier this month, Tesla’s competitor started cutting prices. Geely slashed the price of Zeekr 01 by over $5,000. Leapmotor lowered its prices in August.
Demand for electric vehicles in China has shrunk since Beijing paused incentives last year.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 13.5% and 120.2%, respectively. The EPS estimate for 2023 has moved north by $1.52 in the past 30 days. The 2024 EPS estimate has moved up by $1.43 in the past 30 days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 27.6%, respectively. The EPS estimate for 2023 has increased by 97 cents in the past 30 days. The 2024 EPS estimate has moved up by $1.64 in the past 30 days.
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Tesla (TSLA) Undercuts Prices of Two Model Y EVs in China
Tesla, Inc. (TSLA - Free Report) resumes price war in China to compete with local EV makers. The automaker cuts prices of two Model Y electric cars. It reduced prices of the Long Range model by 4.5% to 299,900 yuan and the Performance model by 3.8% to 349,900 yuan.
The EV pioneer is also offering an insurance subsidy of around $1,000 on Model 3 vehicles until the end of September. Tesla commenced the price war late last year to increase sales and acquire market share.
Per China Passenger Car Association, Tesla’s sales plunged 31% between June and July. On the contrary, Tesla’s biggest competitor in China, BYD Company Limited (BYDDY - Free Report) registered a 3% month-on-month increase in sales. Weakened sales might have persuaded the EV maker to cut prices.
Per Reuters’ analysis of CPCA data, Tesla’s market share recently hit a nine-month low.
Last month, automakers in China pledged not to disrupt fair competition with abnormal pricing, in which, Tesla, the only foreign automaker, joined them. But Tesla started offering a cash rebate to new customers the very next day, following which China Association of Automobile Manufacturers, the association that brokered the agreement, withdrew the pledge.
Earlier this month, Tesla’s competitor started cutting prices. Geely slashed the price of Zeekr 01 by over $5,000. Leapmotor lowered its prices in August.
Demand for electric vehicles in China has shrunk since Beijing paused incentives last year.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space include Oshkosh Corporation (OSK - Free Report) and Toyota Motor Corporation (TM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 13.5% and 120.2%, respectively. The EPS estimate for 2023 has moved north by $1.52 in the past 30 days. The 2024 EPS estimate has moved up by $1.43 in the past 30 days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 27.6%, respectively. The EPS estimate for 2023 has increased by 97 cents in the past 30 days. The 2024 EPS estimate has moved up by $1.64 in the past 30 days.