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Tesla Declines on China Price Cuts and German Plant Shutdown

  • Carmaker trims starting prices of Model 3 and Model Y again
  • Reuters says Red Sea conflict disrupting factory near Berlin

Tesla Model 3 EVs in a parking lot near one of the automaker's dealership in Shanghai.

Photographer: Qilai Shen/Bloomberg
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Tesla Inc. shares dropped after the carmaker cut prices again in China and said its lone European factory will be disrupted by attacks in the Red Sea.

The company reduced starting prices of the Model 3 sedan by 5.9% to 245,900 yuan ($34,300) and marked down the Model Y sport utility vehicle by 2.8% to 258,900 yuan, according to its website.