Tesla’s sales in China slumped by 19% in February from the same month last year, according to the China Passenger Car Association. This was in part because Chinese new year fell in February, but the news focused investors’ attention on the weakening demand for electric vehicles and Tesla’s stock fell sharply. A new price war is under way in China to tempt buyers. Tesla reduced the price of its Model 3 and Model Y cars in January. This week byd slashed the prices of the newer version of its bestselling Yuan Plus car and its cheapest model, the Seagull.
Adding to Tesla’s woes this week, the company stopped production at its factory near Berlin following an arson attack claimed by a far-left group. Local environmentalists have opposed the factory from the start, saying it soaks up local water supplies and damages woodland.
Tesla is not the only business struggling in China. Apple’s sales of iPhones in the country plunged by 24% in the first six weeks of 2024, year on year, according to data from Counterpoint Research…Read More