Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Tesla and Li Auto Stock Plunge as EV Price Wars Escalate

Tesla shares took a 3% dip, while Li Auto plunged to an 11-month low as both companies made aggressive price cuts
April 22, 2024

Electric vehicle giants Tesla and Li Auto witnessed a significant drop in their stock prices on Monday, with Tesla shares falling by 3% and Li Auto hitting an 11-month low. This decline followed both companies' decisions to slash prices on their electric vehicles in various markets, intensifying the competition in the EV industry.

Tesla, the U.S.-based EV giant, reduced the starting price of its Model 3 in China to 231,900 yuan ($32,000) on Sunday, marking a 14,000 yuan reduction. Reuters reported that Tesla also decreased prices in other major markets, including Germany.

Similarly, Li Auto announced price cuts for its models, including the L7, L8, L9, and the newly launched Mega SUV, via its Weibo account on Monday. These price cuts reportedly ranged up to 30,000 yuan.

Both Tesla and Li Auto updated their website listings to reflect the new prices.

The price reductions led to a significant drop in the shares of Li Auto, which hit their lowest level in 11 months during Monday's session. Other Chinese EV makers also saw a decline in their stock prices, with Nio down 1.7%, Xpeng off 1.9%, and BYD shedding 0.2%.

The intensified competition in China's EV space has prompted local automakers to aggressively compete with Tesla by offering advanced technology and competitive pricing.

Eugene Hsiao, head of China equity strategy at Macquarie Group, noted in a weekend research note that all of China's major EV makers are striving to "take the crown from Tesla" in what he described as the most competitive domestic auto market in recent history.

Hsiao emphasized that the price discounts are just one aspect of the various strategies employed by major EV players in China to prepare for "the coming wave of industry consolidation."

The competition in the EV market has escalated further with the entry of Chinese smartphone maker Xiaomi, which launched its SU7 electric car earlier this month. Priced approximately $4,000 less than Tesla's Model 3, Xiaomi claimed that its new car offers a longer driving range, adding to the challenges faced by established players in the market.

More about:  | | |

Last related articles

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram