Chinese Tesla owners protest another round of price cuts
- Reference: 1673280910
- News link: https://www.theregister.co.uk/2023/01/09/china_tesla_price_cuts/
- Source link:
Early reports indicate the change is part of an effort to increase demand at Tesla's Shanghai factory, its largest production hub, in the face of [1]low Chinese delivery numbers in December, despite a previous round of price cuts in October 2022.
With sales low despite discounts, it's beginning to look like Tesla demand in China [2]is lower than anticipated . The move comes days after China ended a more than 10-year-old [3]electric vehicle subsidy , which means companies like Tesla would need to cut prices to remain competitive.
[4]
According to Reuters, which reviewed the new pricing scheme, this second round of price cuts means Tesla vehicles in China are now priced between [5]13 and 24 percent less than they were prior to the first cut.
[6]
[7]
The move is the first major decision Tesla has made since placing its China lead, [8]Tom Zhu , second in command of the company with additional duties that include overseeing sales operations in North America and Europe, and Tesla's US-based factories.
What about us? ask aggrieved Tesla buyers
Chinese social media was abuzz with news of the second round of Tesla discounts, with several groups of people announcing their intent to protest at Tesla distribution centers and showrooms over the weekend, which it appears they did, albeit to little success.
Videos on the platforms appeared to show [9]around 200 people who had bought Tesla Model Y and 3 vehicles apparently crowded into a Shanghai Tesla delivery center over the weekend, demanding apologies, compensation or other forms of credit.
Crowds at other locations were caught on video calling for refunds and confronting police, but those in Shanghai were reportedly able to meet with Tesla staff and hand over a list of demands.
[10]
Reuters quoted a Tesla China spokesperson it spoke to on Saturday as saying the company had no plans to compensate buyers who took delivery before the most recent price cut, but no mention was made of those who bought a Tesla in the last quarter of 2022, between the cuts.
[11]Microsoft said to be thinking of sinking $10m into self-driving truck startup
[12]Tesla fails to push racial discrimination lawsuit into arbitration
[13]From execs to factory products, Tesla's China unit is gaining prominence
[14]Cops chase Tesla driver 'dozing' with Autopilot on
Begun, the EV price wars have
Despite an increase in deliveries and production, Tesla still made it to the 2022 finish line beaten and bruised, with stock prices having dropped and [15]delivery goals missed . Some Tesla investors have been critical of CEO Elon Musk's lack of attention paid to the car company since acquiring Twitter, calling for Musk to step down, likely in favor of a Zhu-run Tesla given current circumstances.
That could mean more price cuts, which might not be a bad thing, unless you're a Tesla owner upset that prices do, in fact, change over time (though if you [16]bought your Tesla in Bitcoin you've no room to complain).
A recent Deloitte study found that demand for electric vehicles was at an all-time high, but potential buyers [17]aren't sure they want to pay current EV prices. The same study found that EV buyers were less interested in protecting the environment and more concerned with saving money with their EV purchase – another sign that prices like Tesla's, with its cheapest vehicle (the Model 3) starting at nearly $47,000, aren't sustainable once early adopters buy in.
Tesla also recently cut prices for the Model 3 and Y in Japan by 10 percent, but hasn't indicated it has plans to cut prices in Europe, where sales jumped 93 percent year-over-year in December and the Model Y [18]recently became the best-selling new car on the continent. ®
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[1] https://www.reuters.com/business/autos-transportation/tesla-sold-55796-china-made-vehicles-december-2023-01-05/
[2] https://electrek.co/2022/11/22/tesla-squash-rumors-low-demand-china-no-more-price-cuts/
[3] https://www.reuters.com/business/autos-transportation/tesla-ev-rivals-absorb-costs-after-china-pulls-plug-subsidy-2023-01-05/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y7xILV0fJ0MzDrB35cGYJQAAAMs&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://www.reuters.com/technology/tesla-cuts-prices-model-3-model-y-china-2023-01-06/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y7xILV0fJ0MzDrB35cGYJQAAAMs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y7xILV0fJ0MzDrB35cGYJQAAAMs&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2023/01/05/china_tesla_global_spread/
[9] https://www.reuters.com/business/autos-transportation/tesla-owners-china-protest-against-surprise-price-cuts-they-missed-2023-01-07/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y7xILV0fJ0MzDrB35cGYJQAAAMs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://www.theregister.com/2023/01/06/microsoft_gatik_autonomous_driving/
[12] https://www.theregister.com/2023/01/05/tesla_discrimination_lawsuit/
[13] https://www.theregister.com/2023/01/05/china_tesla_global_spread/
[14] https://www.theregister.com/2023/01/04/tesla_driver_slept_as_autopilot/
[15] https://www.theregister.com/2023/01/03/tesla_q4_delivery_results/
[16] https://www.theregister.com/2021/05/13/tesla_stops_accepting_bitcoin/
[17] https://www.theregister.com/2023/01/05/ev_deloitte_price/
[18] https://www.jato.com/teslas-model-y-leads-the-european-new-car-market-for-the-first-time/?from_newsroom=true
[19] https://whitepapers.theregister.com/
Generally never a right time to buy for lots of stuff
e.g. tech as prices always seem to be going down & you can get the same thing cheaper down the line. What is the eye wateringly expensive "latest & greatest" now is a far more affordable also ran in a years time. .. or with recent high end graphics card prices, they were nightmare priced when the last "shortage" hit and even now they have dropped a bit its possible they may spike again, but its always caveat emptor
Tends to happen for most things, certainly does for conventional cars where in UK cars with "last years plates" get offered at cheaper (but still high prices) by dealers.
And if Chinese are removing incentive schemes & EV makers want to sell decent volumes than price cuts are obviously a thing you could likely predict. When UK removed its incentive scheme for solar, there was a price drop (some just "natural" due to ongoing tech getting cheaper, but some to try and stimulate sales)
Occasionally you may be lucky in some purchases (e.g. in UK for a long time house prices increased over the years so older people who could buy when prices were affordable vs average pay did very well at "earning asset value") but its always a gamble....
Re: Generally never a right time to buy for lots of stuff
I was thinking about houses too. If the precedent were set that you could get money back on an item with a price cut, then a seller could say that they want more dosh from the buyer when the house is worth more.
But, when would it stop? Do the Chinese Tesla owners think they can get some more cash back every time the price drops?
Re: Generally never a right time to buy for lots of stuff
Yep ordered some curtains between Christmas and new year and got a 10% discount. A week later they are advertising a new sale with up to 30% off.
I haven’t gone back and checked but as I was happy with the price when I ordered it I can’t see any point - they are being custom made and I am waiting for the dispatch date which should be this week.
Happens all the time you buy something and it is cheaper a few weeks later but occasionally you can be smug as the price rockets up.
Re: Generally never a right time to buy for lots of stuff
I can kind of see their point if they've paid and Tesla havn't delivered their car yet. I'd be annoyed too - though likely not annoyed enough to actually go protest.
The house price example is an interesting one because in England both sides generally _can_ pull out of a property sale (or attempt to renegotiate) between accepting the sale price and actually handing over the money and getting the keys.
Musk bringing buyer's remorse to the masses
Well done, well done indeed
Catch Up Time
The Chinese don't seem to have got the hang of capitalism yet :/
I'm sure the majority of commentards here know all too well the immediate depreciation of hi-tech gear, especially cutting edge stuff. You buy a CPU, GPU etc and a month later, almost certainly the price is lower, barring a silicon shortage or similar. A year later...
Add that up over the years. Hang on... I could be worth a bomb! Hey! AMD, let's chat...