This is a new sign of Tesla’s difficulties in the electric car market, as the Chinese BYD stole the title of largest global seller at the end of 2023. Faced with an erosion of sales, Elon Musk’s company has reduced the selling price of its electric vehicles in the PRC by almost $2,000.
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Competition from low-cost Chinese electric cars had already forced Tesla to lower its prices in UNITED STATES last year.
Washington and Brussels may regularly denounce unfair competition from Beijing, accused of stuffing its national manufacturers with subsidies, and they may threaten to tax imports, but the West has no influence on the Chinese market, now the largest automobile market in the world.
It is not for nothing that the largest Tesla factory outside the United States is located in Chinain Shanghai.
But at the beginning of January, the group ofElon Musk was forced to recall 1.6 million cars for a software update.
Faced with a sluggish order book, the billionaire announced last Monday the layoff of 10% of his workforce worldwide.
By reducing its prices by 14,000 yuan on average, Tesla hopes to stop the bleeding. This Saturday, Musk postponed a trip planned for India to devote himself to the difficulties of the group.
In June, he will try to have a record remuneration of $56 billion per year validated by the general meeting of shareholders. When the group’s stock has lost 40% of its value in four months, the pill may be a little hard to swallow.
Listen againTesla, a company ultimately like any other