Tesla reportedly cut the starting price of its Model 3 in China to 231,900 yuan on Sunday, a reduction of 14,000 yuan.
Chinese rival, Li Auto, also cut prices for its models, including the L7, L8, L9, and the newly launched MEGA SUV.plummeted to an 11-month low, after both companies slashed prices of their electric vehicles in various markets amid intense competition.Meanwhile, Li Auto cut prices for its models, including the L7, L8, L9, and the newly launched MEGA SUV, it said on itsChecks by CNBC of both Tesla and Li Auto websites on Monday showed their vehicles were listed at the updated prices.
Hong Kong-listed shares of Li Auto fell 8.3% to their lowest level in 11 months during the Monday session, while shares of other Chinese EV makers also fell — These price reductions come at a time when competition in China's EV space has intensified, with local automakers pushing to outsell U.S. rival Tesla withEugene Hsiao, head of China equity strategy at Macquarie Group, said in a research note over the weekend that all of China's biggest EV makers have one goal in mind —"taking the crown from Tesla," while noting that it is the most competitive domestic auto market in recent history.
Hsiao said the price discounts were just one facet of a variety of strategies that big EV players in China are using to survive"the coming wave of industry consolidation."Delaware State University