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Tesla Cuts Prices In China And Other Asian Markets: Report As per the report, the US automaker also cut prices on its best-selling Model Y and Model 3 EVs in Japan, South Korea and Australia

By Teena Jose

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Tesla, the world's biggest electric vehicle manufacturer, cut prices in China for the second time in less than three months on Friday, fuelling forecasts of a wider price war amid weaker demand in the world's largest autos market, according to a Reuters report.

As per the report, the US automaker also cut prices on its best-selling Model Y and Model 3 EVs in Japan, South Korea and Australia in an effort to help stoke demand for output from its Shanghai factory, its single largest production hub.

While sharing the market insights, the report revealed that Tesla shares fell 2.5% in active trading Friday and the stock has lost 70% of its value in the last year.

In last month CEO Elon Musk had reportedly said that, "Radical interest rate changes had affected the affordability of all cars, new and used, and that Tesla could cut prices to sustain volume growth."

According to the Reuters' industry calculations, the latest cut in China, along with another in October and recent incentives for Chinese buyers, mean a 13% to 24% reduction in Tesla's prices from September in its second-largest market after the United States.

Grace Tao, Tesla's vice-president in charge of external communications in China, reportedly said on Weibo that the price cuts in China reflected engineering innovation and answered Beijing's call to encourage economic development and consumption.

So far, there has been no sign of Tesla cutting prices in Europe, where sales jumped 93% in November year-on-year, according to sales data from research group JATO Dynamics, and the Model Y was the top-selling car for the second time in 2022, stated the report.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
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