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Tesla’s heavy price cuts could revive sales growth as rivals Nio, Xpeng and Li Auto hold back on discounts
- Tesla’s sales could rebound in January and February, buoyed by its price cuts, UBS analyst Paul Gong says
- The US carmaker has cut the prices of Model 3 and Model Y cars twice since October
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Daniel Renin Shanghai
Tesla could snatch market share from rival Chinese electric vehicle (EV) makers in the near term as price cuts lure customers away from rivals and sales continue to grow at a steady pace this year, according to analysts.
While Tesla has cut prices of its China-made cars twice in three months amid faltering demand, its Chinese rivals like Nio, Xpeng and Li Auto have not budged on prices.
“Tesla and other EV makers suffered a setback in November and December due to the Covid-19 pandemic as Beijing revised its virus-control policies,” Paul Gong, a UBS analyst, said on Thursday. “But its sales could rebound in January and February buoyed by its price cuts.”
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The possibility of Tesla raising prices later this year when its sales rebound, however, cannot be ruled out, Gong added.
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Tesla owners in China protest against price cuts as consumers tighten budgets
Tesla owners in China protest against price cuts as consumers tighten budgets
Tesla marked down its prices twice since late October, driving prices of Model 3s and Model Ys to their lowest levels since its first vehicle rolled off the wholly foreign-owned factory in December 2019.
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