To The Moon

(1)🔋🚘 $Tesla Motors(TSLA)$ Bearishcut prices in 🇨🇳 for the 2nd time in less than 3 months on 6/1 (Fri), fuelling forecasts of a wider price war amid weaker demand in the 🌎 largest autos market🔥🥵🔥 According to Reuters, TSLA slashed prices for all its Model 3 & Model Y cars in 🇨🇳 by between 6% to 13.5%. This latest cut in 🇨🇳 along with another in Oct & recent incentives for Chinese buyers, mean a 13% to 24% reduction in TSLA prices from Sep in its 2nd-largest market after the 🇺🇸 😰😰

➡️ The starting price for the Model 3 was cut to 229,900 yuan ($33,427), from 265,900 yuan. Those models are now priced 24%-32% lower than those in the 🇺🇸

➡️ The cuts came days after Beijing ended a subsidy programme, with softening demand forcing 🔋🚘TSLA & rivals to absorb the cost. However, Grace Tao, vice president in charge of TSLA’s external communications in 🇨🇳 said on Weibo that the price cuts in 🇨🇳 reflected engineering innovation & answered Beijing's call to encourage economic development & consumption🤷🏻‍♀️🤷🏻‍♀️🤷🏻‍♀️

(2)🔋🚘TSLA also cut prices on its best-selling Model Y & Model 3 electric vehicles in 🇯🇵 🇰🇷 & 🇦🇺 in what a person with direct knowledge of the plan said was part of an effort to help stoke demand for output from its Shanghai factory, its single largest production hub.

➡️ This shift is the 1st major move by TSLA since appointing its lead executive for 🇨🇳 & Asia, Tom Zhu, to oversee global output & deliveries that have been at the heart of the company's recent challenges after falling short of its 2022 delivery target.

⚠️ Automakers have long turned to incentives to control inventory, but, until late last year, 🔋🚘TSLA had been able to keep prices steady or even raise them due to strong orders. However, Musk said last month that “radical interest rate changes” had affected the affordability of all cars, new & used, & that TSLA could cut prices to sustain volume growth🐻🐻🐻

(3) Deliveries of 🔋🚘TSLA’s 🇨🇳-made cars hit their lowest in 5 months in Dec🙈🙉🙊 TSLA’s Shanghai plant, which was expanded last year, also exports vehicles to Europe.

👍 So far, there has been no sign of TSLA cutting prices in Europe, where sales jumped 93% in Nov year-on-year, according to sales data from research group JATO Dynamics, & the Model Y was the top-selling car for the 2nd time in 2022.

👍 🔋🚘TSLA also saw its share of Europe's battery EV market jump to 18.9% in Nov from 12.3% in the same month a year earlier.

How Are 🇨🇳EVs Responding❓After the price cut,

🤔 Since Oct, 🔋🚘TSLA has quickly reversed vehicle price increases that it put in place last year. Other 🇨🇳EVs followed those increases to help cover rising raw material & other costs.

🤔🔋🚘TSLA’s Model 3 was the equivalent of about $1,000 more that BYD's Seal, a model launched in July & the Model 3 is now the same price as BYD's best-selling Han EV.

🤔 Prices of 🔋🚘TSLA’s Model 3 are lower than what NIO, XPEV, & LI charge for their flagship vehicles.

➡️ NIO launched its midsize ET5 sedan as its closest competitive offering to the Model 3. It began shipping in late 2022, but is priced at over $45,000. LI’s L7 SUV starts at the equivalent of almost $50,000, making it much less competitive with the Model Y (less than $40,000)

🤔 BYD recently raised the prices for its best-selling models after the government's subsidies ended. BYD declined to comment on competitors' pricing, but said it would adjust its own according to changes in market demand.

🔥🥵 Li Auto, XPEV, & NIO lost between 12.5% & 17% at the lows of the morning.

👍 Despite TSLA’s price cut📰 & dropping to its 13th 52Week-Low of $101.81 since Dec 2022, it gained 2.47% to close at $113.06.

👎 BYD lost 1.61% to close at $52.50 in 🇺🇸 & $BYD COMPANY(01211)$  lost 2.6% to close at HKD202.40 after a stellar week. 

👎 $NIO Inc.(NIO)$  pared early morning losses to close 4.51% down at $10.37

🐻 Li Auto lost 9.16% to close at $20.93

🐻🐻 $XPeng Inc.(XPEV)$  was the BIGGEST Loser, crashing 15.04% to close at $10.11 after a stellar jump to $12+ on Jan 4 & 5. 

Fellow 🐯🐯🐯 Do you 🔋🚘TSLA’s price cuts will force other 🇨🇳 EVs to cut prices too❓ Do vote🗳 & Share your Thoughts on how their stock prices might be affected in the comments section❣️ Please also help to click on the “Like” & “Share/Repost” buttons at the bottom right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰 You will Greatly Encourage Me❣️

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