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Tesla (TSLA) Slashes Prices of Model 3 & Model Y in China
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Tesla Inc. (TSLA - Free Report) has reduced the price of both versions of Model 3 and two of three versions of Model Y in China to cope with increased competition.
Tesla has a factory in Shanghai with an annual capacity of 950,000 vehicles, the largest in the world. The factory produces Model 3 and Model Y.
In China, Model 3 is offered in two trims, an entry rear-wheel drive version and a dual-motor, all-wheel drive, long-range version.
Following the price cut, the entry-level Model 3 has a starting price of RMB 245,900, from the previous starting price of RMB 261,400. The starting price of the Model 3 Long Range version is now RMB 285,900, from the last starting price of RMB 297,400.
The three trims of Model Y offered in China are the base rear-wheel-drive version, the dual-motor all-wheel-drive Model Y Long Range and the dual-motor all-wheel-drive Model Y Performance.
After the price cut, the base Model Y's latest starting price is RMB 258,900, from the previous starting price of RMB 266,400. The starting price of the Model Y Long Range is RMB 299,900, from the last starting price of RMB 306,400. However, the starting price of the Model Y Performance has remained unchanged.
The Model 3, which is available in China, is an updated version of a sedan that went on pre-sale on Sep 1, 2023 and on sale on Oct 19, 2023, with deliveries commencing in late October.
An updated Model Y was launched in China on Oct 1, 2023. The updates were minor, with no price change. Deliveries for the same started in mid-October.
Tesla increased the price of Model Y Performance by 4% on Oct 27, 2023, following which all the price hikes were less than 1% till the end of November.
The updated Model 3 has continued to face competition and failed to make any significant impact on the company’s sales.
Despite rising competition, Model Y continues to remain popular in China and is among the best-selling electric vehicles in the country.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have moved up a penny and 30 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 10.4%. The EPS estimate for 2023 has improved by 2 cents in the past 30 days. The EPS estimate for 2024 has improved by 4 cents in the past seven days.
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Tesla (TSLA) Slashes Prices of Model 3 & Model Y in China
Tesla Inc. (TSLA - Free Report) has reduced the price of both versions of Model 3 and two of three versions of Model Y in China to cope with increased competition.
Tesla has a factory in Shanghai with an annual capacity of 950,000 vehicles, the largest in the world. The factory produces Model 3 and Model Y.
In China, Model 3 is offered in two trims, an entry rear-wheel drive version and a dual-motor, all-wheel drive, long-range version.
Following the price cut, the entry-level Model 3 has a starting price of RMB 245,900, from the previous starting price of RMB 261,400. The starting price of the Model 3 Long Range version is now RMB 285,900, from the last starting price of RMB 297,400.
The three trims of Model Y offered in China are the base rear-wheel-drive version, the dual-motor all-wheel-drive Model Y Long Range and the dual-motor all-wheel-drive Model Y Performance.
After the price cut, the base Model Y's latest starting price is RMB 258,900, from the previous starting price of RMB 266,400. The starting price of the Model Y Long Range is RMB 299,900, from the last starting price of RMB 306,400. However, the starting price of the Model Y Performance has remained unchanged.
The Model 3, which is available in China, is an updated version of a sedan that went on pre-sale on Sep 1, 2023 and on sale on Oct 19, 2023, with deliveries commencing in late October.
An updated Model Y was launched in China on Oct 1, 2023. The updates were minor, with no price change. Deliveries for the same started in mid-October.
Tesla increased the price of Model Y Performance by 4% on Oct 27, 2023, following which all the price hikes were less than 1% till the end of November.
The updated Model 3 has continued to face competition and failed to make any significant impact on the company’s sales.
Despite rising competition, Model Y continues to remain popular in China and is among the best-selling electric vehicles in the country.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , Mercedes-Benz Group AG (MBGAF - Free Report) and NIO Inc. (NIO - Free Report) . VLVLY and MBGAF sport a Zacks Rank #1 (Strong Buy) at present, and NIO carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have moved up a penny and 30 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for NIO’s 2023 sales indicates year-over-year growth of 10.4%. The EPS estimate for 2023 has improved by 2 cents in the past 30 days. The EPS estimate for 2024 has improved by 4 cents in the past seven days.