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January 9, 2023: -Tesla’s Chinese suppliers increased after the electric automaker sliced expenses for a few models in China.
In a Weibo publication, the firm stated that its Model 3 and Model Y vehicles in China would now cost 229,900 yuan and 259,900 yuan, respectively.
According to calculations, the most delinquent prices represent a decrease of 13% to 24% from four months ago.
Shenzhen-listed shares of Chinese suppliers of Tesla rallied on optimism the cost slashed could improve demand.
Anhui Shiny Electronic Technology Shares closed 8.8% higher, and Hengdian Group DMEGC Magnetics gained almost 9%.
Zhejiang Chint Electrics shut down 7.92% higher, and Shandong Jinjing Science & Tech increased by over 6%.
Previously, Tesla was cutting the prices in China in late October to prop up sales and its competitive edge against rivals, which include BYD, which recently revealed new luxury models.
In a Weibo post, Grace Tao, a Tesla vice president of external problems in China, said that the recent price adjustments were meant to improve demand.
The moves “answer the administration’s call with practical actions to boost economic development and encourage consumption,” Tao wrote.
On Thursday, the China Passenger Car Association reported that Tesla’s December deals of China-made cars decreased to 55,796, the lowest in five months.
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