Hyperdrive
China EV Makers Fall on Report of Tesla’s Cheaper EU-Made Model
- Nio leads decline with analysts citing firm’s weak financials
- The news will weigh on sentiment for Chinese brands: LW Asset
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Shares of Chinese electric vehicle makers slid following a report that Tesla Inc. is planning a more affordable model targeting European consumers, intensifying competition in an industry where price wars have eroded profit.
A new Tesla model that will cost €25,000 ($26,863) will be produced at its factory near Berlin, Reuters said Monday, citing an unnamed source. Chief Executive Officer Elon Musk announced the plan last week when he visited the Tesla factory in Gruenheide, without saying when production would start, according to the report.