FILE PHOTO: Visitors wearing face masks check a China-made Tesla Model Y sport utility vehicle (SUV) at the electric vehicle maker's showroom in Beijing, China January 5, 2021.
China Merchants Bank International (CMBI) said Tesla’s price cuts underlined the growing competitive risk for EV makers in China, with industry-wide sales projected to slow into 2023.
“The price cuts underscore the possible price war which we have been emphasising since August,” said Shi Ji, an analyst with CMBI.
Analysts are warning of a growing car inventory glut for autos in China, where auto sales growth slowed in September while EV sales rose at their slowest pace in five months.
But Tesla has also regularly adjusted prices of its cars in China, including reductions, reflecting government subsidies.