Wednesday, July 2, 2025

Tesla Slashes EV Prices in China for Seventh Time This Year

Although the demand for zero-emissions and electric vehicles is expanding steadily despite the economic hurdles posed by the coronavirus pandemic, it appears that America’s most flamboyant EV manufacturer is not being that well-received in one of the world’s largest markets.

According to Bloomberg, Tesla has once again reduced its prices on its performance and longer range models sold in China by 23,000 yuan. This will be the seventh time that Tesla has had to initiate such a move this year, as the demand for its unique vehicles does not seem to be taking off as previously anticipated. GLJ Research’s Gordon Johnson noted that Tesla’s September sales numbers came in significantly weaker, and are the main reason for the sudden reversal on pricing in the communist country.

China, which suffers from a serious pollution problem compared to other major economies, has recently taken a proactive approach to curbing air pollutant levels. The communist country has imposed quotas on car ownership in some of its larger cities, and provides rebates on zero-emission vehicles for those consumers fortunate enough to own a car. As a result, the demand for electric vehicles has skyrocketed in the country, prompting EV manufacturers to flood the market.

However, Tesla saw its vehicle inventory in China nearly double in September, despite ceasing production during the last ten days of the month. Johnson attests this to be the likely reason behind the recent price cuts, and why Tesla is now trudging through plans to export its Chinese-made cars to other parts of Asia and Europe. Johnson also brought attention to Tesla’s apparent market share decline in China, which fell by 2.3% between August and September.

Source: China Passenger Car Assoc., China Assoc. of Automotive Manufacturers, insideEVs, and GLG Research LLC

As Tesla attempts to stoke demand for its electric vehicles in the rest of Asia and Europe, many consumers have taken notice of Tesla’s lack of competition against major automakers such as GM, which sold more than two times the amount of electric vehicles in China during the month of September compared to Tesla. Nonetheless, for a company that allegedly attributes itself as supply constrained, Tesla sure has been going through price cuts like toilet paper. As supply and demand theory states, when one has to continuously reduce the price of an item while failing to sell inventories for three consecutive months, then there is likely a demand problem, rather than a supply problem.


Information for this briefing was found via Bloomberg and GLJ Research. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Apple Expected to Invest $3.6 Billion in Kia Motors to Produce EVs

The day Elon Musk has been dreading may come a lot sooner than anticipated: Apple...

Wednesday, February 3, 2021, 02:41:00 PM

BC Ferries Bans Damaged Electric Vehicles Over Fire Safety Concerns

BC Ferries has prohibited damaged electric vehicles from traveling on its vessels, citing federal safety...

Tuesday, July 1, 2025, 12:17:00 PM

New Energy Vehicles Slated To Make Up 20% Of China’s Car Sales By 2025, Adding Further Pressure On EV Makers Including Tesla

It appears that the global EV market is not going to contract anytime soon, as...

Saturday, November 7, 2020, 04:09:00 PM

Tesla Trades Like a Falling Knife, Yet It’s P/E Multiple Is Much Higher Than Its Comps

Tesla, Inc. (NASDAQ: TSLA) shares are down 68% YTD and 43% just during December 2022....

Wednesday, December 28, 2022, 11:01:00 AM

Tesla Issues TWO Separate Recalls Over Seatbelt Chime Alert, ‘Rolling Stop’ Feature

Tesla (NASDAQ: TSLA) is in the hot seat once again, this time adding two more...

Saturday, February 5, 2022, 03:09:00 PM