Tesla Owners Protest Lower Prices in China; You Read That Right
Tesla (EV) owners took to showrooms to protest Tesla pricing in China last weekend. However, this is not what you might think; This protest swirled around lowered Prices rather than inflated costs. This may sound silly, but the parties protesting Tesla’s price drop are owners who missed out on the opportunity to save on their electric cars. Sudden car price cuts favor new buyers and leave some owners out in the cold.
Why are Tesla owners protesting?
Tesla owners in China gathered in distribution centers and showrooms across the country to protest the brand’s price cuts in early January. Owners claim that they unnecessarily overpaid for their electric vehicles and are claiming rebates and compensation in the form of credit.
About 200 Tesla owners gathered to express their displeasure at the missed opportunity. What’s more, many buyers bought their cars in 2022 before “government support expired” at the end of the year. Consumers believe they were making the right decision. Surprisingly, Reuters reported that the protesters were able to meet the Tesla employees peacefully with the help of the police.
Moreover, some protesters want their Teslas back outright in lieu of getting credit or rebates. For example, a crowd in Chengdu reportedly chanted, “Give the money back, give back our cars.” Either way, owners who missed out on sudden price cuts aren’t happy.
Tesla slashed prices on the Model 3 and Model Y in China, angering existing Tesla owners
The Tesla models that have generated the most buzz are, unsurprisingly, the Model Y and Model Y. Specifically, EVs are the auto industry’s two most affordable offerings, and Tesla produces both models at Gigafactory Shanghai.
According to Tesla, it has cut the prices of its electric vehicles by between 13% and 24%. These discounts represented significant savings during last year’s fall and winter. It’s understandable for owners who bought their electric cars before the end of subsidies and thought they were making the best move. However, Tesla China told Reuters it had no plans to compensate owners of cars they bought before the price cut.
Why does Tesla cut prices in China?
Tesla is likely to lower prices to increase its sales in the Chinese market. According to Reuters, the company’s EV sales were particularly poor in December. Moreover, Tesla may have lowered prices to force other electric vehicle companies to lower their prices in the Chinese market.
This dramatic move is understandable business practice, given the importance of Tesla’s bottom line. Specifically, the Chinese market accounts for about a third of the electric vehicle brand’s global sales. However, it is unclear what the long-term impact of the price cuts will be.
Will Tesla prices drop in 2023?
Tesla raised its prices several times in 2021 and 2022 for the US market. It is unclear if US Tesla prices will fall in 2023. However, prices have fallen in China and Australia, so the US could follow suit.
What do you think about Tesla prices? Tell us in the comments below!