what happened
Shares of Tesla (Nasdaq: TSLA) The electric vehicle maker rose 4.5% on Thursday after slashing the price of its Model 3 sedan in China.
So what
Tesla reduced the base price of the battery-powered Model Dell 8 by 8% to 249,900 yuan (approximately, 36,800) after factoring in a Chinese government subsidy. He called it the U.S. Puts in slightly below the price of the same version of the vehicle, sparking speculation that Tesla may also move to lower prices in its home market.
Shares of Tesla rose on Thursday on optimism that lower prices would help boost vehicle sales in China. Image Source: Getty Images.
The new type of battery would have made possible a reduction in prices. Tesla’s standard-range Model 3 sedan will be offered with a low-cost lithium iron-phosphate battery instead of a nickel-manganese-cobalt battery, Reuters reported.
Now what
Investors are awaiting Tesla’s next third-quarter vehicle delivery report, which is expected to be released in the coming days. The consensus forecast calls for Tesla to report deliveries of 140,000 vehicles, showing a 54% increase over the second quarter.
Some industry observers say strong vehicle sales in China could help Tesla’s top Wall Street forecast. And lower prices will help sell higher in the next quarter.
