Tesla has reduced their car prices in China. Here are the new starting prices (in USD):
• Model 3 RWD: $33,023 (11.7% drop)
• Model 3 P: $48,014 (5.7% drop)
• Model Y SR: $37,826 (10% drop)
• Model Y LR: $45,103 (13.4% drop)
• Model Y P: $52,381 (9.5% drop)
This will likely reduce margins in China to around 10-15% from 25-30%. This will increase unit sales substantially.
Tesla China will still be exporting about 30-40% of its capacity to Europe and other locations.
BREAKING: Tesla CN slashed prices for all variants of Model 3/Y.
Model 3 RWD: from 265,900CNY to 229,900CNY
Model 3 P: from 349,900CNY to 329,900CNY
Model Y RWD: from 288,900CNY to 259,900CNY
Model Y LR: from 357,900CNY to 309,900CNY
Model Y P: 397,900CNY TO 359,900CNY
— Ray (@ray4tesla) January 6, 2023
Tesla has reduced Model 3/Y prices in Australia. New starting prices (in AUD):
• Model 3 RWD: $63,900 (2.4% drop)
• Model 3 LR: $76,900 (3.9% drop)
• Model 3 P: $89,900 (1.9% drop)
• Model Y RWD: $68,900 (2.4% drop)
• Model Y P: $94,900 (2.4% drop)
Tesla has reduced Model Y prices in South Korea. New starting prices (in SK Won):
• Model Y LR: ₩84,999,000 (~66,890 USD, 12.1% drop)
• Model Y P: ₩94,731,000 (~74,549 USD, 9.5% drop)
This will put pressure on BYD and all other China car companies.
BYD Song: 22,449 sales in January, 70,079 sales in December
BYD Han: 12,780 sales in January, 30,043 sales in December
BYD Yuan: 8,596 sales in January, 29,468 sales in December
BYD Dolphin: 10,602 sales in January, 26,074 sales in December
BYD Qin: 26,542 sales in January, 26,206 sales in December
BYD Tang: 9,060 sales in January, 20,165 sales in December
BYD Seal: 0 sales in January, 15,378 sales in December [Seal is closest to the RWD model 3. Seal now $31k vs $33k for Tesla M3]
BYD Destroyer 05: 0 sales in January, 6,107 sales in December
BYD Frigate 07: 0 sales in January, 1,805 sales in December
BYD will likely hold up a little better than legacy gas cars like VW.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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Great. Can we get those prices here now in the US?
no we won’t for a few months or longer. The US is still selling and now we have the $7500 tax credit. So the government provided the price cut.
As the US market worsens with recession or used car repossession crisis, and Austin ramps then there will be price cuts.
Yes not surprising 2023 is going to be a bloody rough year economically for the vast majority of companies, the Macro environment is very rough with
Europe – Energy and Russian war
China – Property bubble / Covid
USA – Possible House chaos by Republican infighting and danger of Debt Default actually used as a political weapon
Plus all international banks fighting inflation, its going to be a very rough environment worldwide until some of these factors drop away, my guess somewhere in 2024
Tesla are lucky that they have the wiggle room to drop prices and at least remain some profit, they need to drop more down to zero profit for a year till things clear up
Model 3 RWD price in Germany starts at 52588 USD. Is China price before tax?
Tesla goes sub-100 Friday and may not see 100 again until the market starts going up again. It won’t be a leader until at least 2024 when other products with higher margins take over.
Tesla doesn’t deserve its 34 PE when margins are only 20% or less.
They also announced a closure to their Shanghai factory for the rest of January, not just a week as originally planned. The Electric Viking says Tesla is essentially a Chinese car company since it sells more Teslas in China than anywhere else, by far. So if it’s closing its main production line in its main market, things are pretty bad.
Meanwhile, China has probably stolen enough Tesla tech by now that they can stop being nice and subsidizing Tesla, in favor of their own country’s brands. Electric Viking showed a chart of all best selling cars and best-selling companies. It’s Tesla, BYD and other “Chinese” brands all the way down except for a tiny showing in 13th place by VW for a car they don’t even make themselves but is made by a partner.
https://www.youtube.com/watch?v=8BhUhB00PvM
Bill Gates was right to short the stock since summer. I wonder if he’s richer than Elon Musk again.
Tesla still grows about 50% per year, both in revenue and in profit. This means that the PEG ratio is less than one, i.e. cheap stock. Compare with Amazon which has a PEG of ~2…
So yes, Tesla deserves the PE of 34 and more.
Shorting stocks should be illegal. Asinine that people with money, can tear down companies that way, F’d up.
Cool