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Shares of Tesla (NASDAQ:TSLA) are down 6.47% in premarket trading Friday after the electric vehicle maker announced a cut to car prices in China and other Asian markets as part of efforts to stoke demand for output from its Shanghai plant.
According to Reuters, Tesla dropped prices for all versions of its Model 3 and Model Y cars in China by between 6% and 13.5%. The starting price for Model 3 was cut to 229,900 yuan ($33,427) from 265,900 yuan. This latest cut means a 13% to 24% reduction in Chinese Tesla’s prices since September.
The company cut Model 3 and Model Y prices in Japan by about 10% each. The price for the Model 3 rear-wheel drive version is now ¥5.369 million ($40,091), down from ¥5.964M. Tesla’s price cuts in South Korea differed from model to model but ranged from about 6M won to 10M won ($4,725 to $7,875).
Tesla’s rivals have also been negatively affected by these latest rounds of price cuts as Li Auto (NASDAQ:LI), Xpeng (NYSE:XPEV), and Nio (NYSE:NIO) are all down 7.29%, 10.59%, and 6.17%, respectively, in premarket trading on Friday.
