The week is ending on a down note for Tesla (NASDAQ: TSLA) investors Friday, as shares of the electric car superstar slumped for a second straight day -- down 3.5% as of 10:30 a.m. EST. Recent declines in the stock price have owed mainly to problems with the supply chain in China, and weakening demand among car buyers, but today's stock price tumble seems to be on Tesla because it's cutting prices in China. Again.
Citing a "plunge" in deliveries of its EVs in China in December, The Wall Street Journal reported today that Tesla is cutting prices on its Model 3 electric sedans and Model Y electric crossovers by 6% and 13%, respectively. And these price cuts are on top of price cuts announced late in 2022.
At $32,700 for a Model 3, the Journal points out, Tesla is now selling its Model 3 in China for 30% less than Americans pay for the car. And at $37,000, a Chinese Model Y now costs 36.5% less.
Source Fool.com