Tesla Rout Deepens After Second China EV Price Cut in 10 Weeks
- Model Y starts at 43% less than in US; Model 3 is 30% cheaper
- Shares continue their decline after worst-ever month and year
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Tesla Inc. shares extended their slump after the carmaker made another round of price cuts in China’s increasingly competitive electric vehicle market.
The starting price for Tesla’s locally built Model Y sport utility vehicle has dropped 10% to a new low of 259,900 yuan ($37,875), according to the company’s China website. That standard-range, rear-wheel-drive version costs 43% less than the base Model Y available in the US, which has a longer range and is all-wheel-drive. Tesla also lowered the price of the Model 3 by 14% to 229,900 yuan, about 30% cheaper than in the US.