Today’s value on Wall Street – Tesla cuts prices for its electric vehicles in China

(AOF) – The title of the American electric vehicle manufacturer Tesla fell on the stock market by 4.72% to 204.31 dollars after having decided to lower its prices on the Model 3 and Y in China. Faced with a market where economic tensions and competition are intensifying, Tesla is compelled to this commercial effort for the first time. The automaker has slashed the price of the least expensive Model 3 sedan that is built locally by 5%. This one going to 265,900 yuan. The company lowered the starting price of the Model Y SUV by 8.8% to 288,900 yuan.

Local Chinese automakers like BYD are on the rise. BYD sold 200,973 vehicles last month. For their part, newcomers such as Nio Inc. and Xpeng Inc. are also expanding their car lines.

The slowdown in the Chinese real estate market and the energy crisis in Europe are not helping the business of the American manufacturer, which must also deal with a surge in the price of battery inputs for electric vehicles such as battery-grade lithium.

In addition to its activity in China, Tesla stood out last week by publishing its results for the third quarter of 2022 marked by disappointing sales. Earnings per share adjusted group share increased in the third quarter of 2022 over one year: 1.05 dollars against 0.62 dollars. The consensus was for $1.01. Its adjusted Ebitda is up 55% to 4.96 billion dollars against 3.20 billion dollars a year ago at the same period. Its sales of 21.45 billion dollars (+56%) against 22.09 billion expected, however, disappointed analysts.

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