Tesla, Inc. (TSLA - Free Report) has lowered the price of its flagship Model 3 electric vehicle (EV) in China, per Reuters. This Palo Alto, CA-based EV pioneer announced that certain Model 3 EV prices were reduced by up to 7.6%. After this price cut, the starting price of Model 3 sedans in China now stands at 499,000 yuan ($72,000).
China offers huge prospects for EV manufacturer like Tesla. However, Tesla’s high dependence on imports at times of high import tariffs impeded its growth. The company intends to begin manufacturing vehicles in China by 2019 to keep a lid on expenses. The latest move to lower vehicle prices in the mainland reflects the automaker’s interest in China.
In fact, this is the third time in the past two months that Tesla has slashed vehicle price in China. In November, the company cut prices of Model X and Model S vehicles by 12-26% in China. Earlier this month, this automaker reduced Model S and Model X car prices in China. The price of Model S was cut by 105,000 yuan ($15,200) and Model X’s by up to 65,000 yuan. The possibility of China suspending additional tariffs on U.S.-manufactured cars and light trucks prompted Tesla to reduce its vehicles price in China.
In the past three months, shares of Tesla outperformed the industry it belongs to. Over this time frame, Tesla’s stock has gained 6.7% against the industry’s decline of 7.6%.
Currently, Tesla sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and America’s Car-Mart, Inc. (CRMT - Free Report) . While Allison Transmission and Fox Factory currently sport a Zacks Rank #1, America’s Car-Mart carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 4.3%.
Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 17.7%.
America’s Car-Mart has an expected long-term growth rate of 19.5%. Over the past six months, shares of the company have grown 11.8%.
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