Shares in Tesla, Inc. (NASDAQ: TSLA) declined 1.23% in the pre-market trading Wednesday after the company announced to cut Model S and X prices by over 6% in China.
Tesla has announced price cuts on its premium vehicles, the Model S and Model X, exclusively in the Chinese market. The announcement was made through a post on the prominent social media platform Weibo, where the EV giant unveiled the updated prices.
The company has slashed the Model S price by 6.7%, bringing it down to 754,900 yuan ($103,477.58) from its previous price of 808,900 yuan. Similarly, the Model X price has been reduced by 6.9% from 898,900 yuan to 836,900 yuan.
In addition, Tesla, Inc. (NASDAQ: TSLA) announced price cuts for the long-range and performance versions of its Model Y in China, effective August 14.
These latest price adjustments have prompted concerns among industry experts and investors regarding the potential impact on Tesla’s profit margins.
China-manufactured Tesla vehicles witnessed a 31% drop in sales in July compared to June. This marked their first month-to-month decline since December. The automaker attributed this decline to temporary production halts aimed at facilitating the launch of an upgraded Model 3 variant.
On the other hand, Chinese automaker BYD (002594.SZ) reported a surge in sales figures from June.