Tesla Stock Falls After Musk Cuts Prices In China

Tesla is back to cutting prices in China, and investors don’t seem happy about it, Michelle Toh and Laura He reported for CNN.

Photo Insert: Tesla’s stock slid 1.2% in New York on Monday following the announcement of price cuts.

Shares of the electric vehicle maker slipped Monday after it cut prices for some of its cars in the country again, reigniting a price war in the world’s biggest auto market.

The manufacturer announced a significant discount for its Model Y in China on Monday, saying two models would be discounted by 14,000 yuan ($1,929) effective immediately.

The long-range model will now cost 299,900 yuan ($41,340), while the performance model will be priced at 349,900 yuan ($48,200), according to Tesla posts on Chinese social media and its website.

That would mean reductions of 4.5% and 3.8%, respectively.

Additionally, buyers of Tesla’s Model 3 will receive a subsidy of up to 8,000 yuan ($1,107) if they purchase the car through a preferred insurance provider through the end of September, the company said. The move failed to impress investors.

Tesla’s stock slid 1.2% in New York on Monday following the announcements. The price cuts, Tesla’s first since January, reflect rising competition in China, particularly within its fast-moving electric vehicle sector.

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