- Tesla has slashed its Model 3 & Model Y electric car prices by as much China’s 9%.
- Elon Musk, the boss of EV manufacturer Tesla, warned last week that China was already in a “recession”
- China’s GDP growth fell below Beijing’s target of 5.5% in the last quarter, according to economic data released Monday.
TeslaChina has seen concerns about possible recession and China has cut the price of two of the cars it sells in China.
According to listings posted Monday to its website, the US company reduced the price of its Model 3 electric cars by 9%. China website.
These price cuts follow Elon Musk, Tesla CEO, pointing to a slowdown in China’s economy, and following the disappointing earnings report by the EV maker last week.
Musk declared that China is currently in a “recession of sorts” during Wednesday’s earnings call for the third quarter.
A China’s crisis in the property marketRecent months have seen fears of a recession in China due to the impact on the economy by Beijing’s zero COVID shutdowns.
Official data released Monday showed China’s GDP grew 3.9% year-on-year in the last quarter – putting it on track to be well short of Beijing’s target of 5.5% growth this year.
Tesla shares dropped 3.25% Monday morning in premarket trading, as investors digested China’s price cuts. The stock of the EV company fell following its Earnings report for the third quarterIt showed that it had failed to meet its revenue targets and deliveries, and was at the close of Friday down 3.4% from before the update.
Musk attempted to downplay fears that buyers may abandon Tesla deals if there is a slowdown in demand in China, Europe, or the US.
He stated Wednesday that while he wouldn’t claim that we are recession-proof, it is recession resistant.
Tesla stated that it missed some of its third quarter targets due to temporarily tightened supply chain. However, it has not been able to convince Wall Street’s top analysts that a slowdown in demand will not affect it.
“The bullish narrative is clearly “hitting a rough spot” as Tesla must prove to the Street again that the robust growth story is facing a myriad logistic issues rather than demand softening as EV competition comes from all angles across the globe,” Wedbush analyst Dan Ives told Thursday.
Learn more Wall Street reacts to Tesla’s mixed earnings report for the third quarter
