Photo: Tesla
When a company is as high-profile globally as Tesla, the power of the microscope it's always under gets even greater and oftentimes the results are not great. The latest such development comes from China, in the wake of the new price reductions for Tesla vehicles the company stated were never coming.
The drop in prices announced on Friday brings the price of Tesla vehicles in the country down by between 13% and 24%, but it seems people were not happy with that - the announcement resulted in protests throughout the country on Saturday by those who recently purchased Tesla vehicles. Especially given how prior to the end of the year, Chinese customers were enticed to buy an electric vehicles through various means.
The latest cuts dwarf those in October, which were of only 9 percent, leading to the outrage. For example, the Model 3 was reduced from CNY 265,900 ($38,883) to CNY 229,900 ($33,618), a decrease of 14%. The Model Y has been discounted by 10% from CNY 288,900 ($42,246) down to CNY 259,900 ($38,005).
One cannot blame Chinese customers, as it is already very expensive to own a car in the country and this begs the question, was this a trick from Tesla? The company had claimed the late 2022 reductions would not happen again, yet they did.
The largest protest came in the country's financial center of Shanghai where, ironically, China-market Teslas are made. Reuters reported about 200 customers crammed into the Shanghai showroom claiming they had overpaid for their vehicles.
"It may be a normal business practice but this is not how a responsible enterprise should behave," said one Tesla owner protesting at the company's delivery center in Shanghai's Minhang suburb on Saturday.
According to Zhang, police mediated a meeting between Tesla staff and angry car buyers who presented a list of demands including an apology and compensation or other credits. The immediate onsite reaction from the staff was they would respond to the demands by Tuesday.
Tesla, however, told Reuters the company has no plans to compensate buyers who took delivery prior to the latest price cuts. The move could signify a further market shift away from Tesla vehicles which would be a huge blow for the company as China sales represent a huge number on the company's balance sheet.
Domestic brands have brought the fight for market share right to the steps of Tesla's Giga Shanghai and it showed in the carmaker's year-end financial report. While the facility increased production by 50% over 2021, China-based SAIC outsold Tesla by 53%, according to China Passenger Car Association (CPCA).
What's more, China-based BYD outsold Tesla four-to-one in November alone, delivering 234,598 vehicles compared to 55,796 for Musk and company, a drop of 44%.
The latest cuts dwarf those in October, which were of only 9 percent, leading to the outrage. For example, the Model 3 was reduced from CNY 265,900 ($38,883) to CNY 229,900 ($33,618), a decrease of 14%. The Model Y has been discounted by 10% from CNY 288,900 ($42,246) down to CNY 259,900 ($38,005).
One cannot blame Chinese customers, as it is already very expensive to own a car in the country and this begs the question, was this a trick from Tesla? The company had claimed the late 2022 reductions would not happen again, yet they did.
The largest protest came in the country's financial center of Shanghai where, ironically, China-market Teslas are made. Reuters reported about 200 customers crammed into the Shanghai showroom claiming they had overpaid for their vehicles.
"It may be a normal business practice but this is not how a responsible enterprise should behave," said one Tesla owner protesting at the company's delivery center in Shanghai's Minhang suburb on Saturday.
According to Zhang, police mediated a meeting between Tesla staff and angry car buyers who presented a list of demands including an apology and compensation or other credits. The immediate onsite reaction from the staff was they would respond to the demands by Tuesday.
Tesla, however, told Reuters the company has no plans to compensate buyers who took delivery prior to the latest price cuts. The move could signify a further market shift away from Tesla vehicles which would be a huge blow for the company as China sales represent a huge number on the company's balance sheet.
Domestic brands have brought the fight for market share right to the steps of Tesla's Giga Shanghai and it showed in the carmaker's year-end financial report. While the facility increased production by 50% over 2021, China-based SAIC outsold Tesla by 53%, according to China Passenger Car Association (CPCA).
What's more, China-based BYD outsold Tesla four-to-one in November alone, delivering 234,598 vehicles compared to 55,796 for Musk and company, a drop of 44%.
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