German Manager Magazine: Tesla: Buyers in China react furiously to price cuts002232

hundreds Tesla-Owners gathered in front of Tesla showrooms and delivery centers over the weekend in China gathered to protest against the US company’s pricing policy. After the surprise price cuts a few days ago, they demanded retrospective discounts and credits for contracts they had just signed.

In Shanghai alone, about 200 Tesla Model Y and Model 3 buyers waved placards in front of a Tesla delivery center, reports the US news channel CNN

. Tesla significantly reduced prices for these models on Friday for the second time in three months.

Many said they believed the prices Tesla was charging for its cars late last year would not be cut as abruptly and on the scale that the automaker just announced, the CNN report said. The planned expiry of a state subsidy at the end of 2022 has also prompted many to complete their purchases.

The resentment is not limited to the Tesla branches in Shanghai. Videos posted on social media also showed larger crowds in other Chinese cities from Chengdu to Shenzhen.

After Friday’s surprise price cuts, Tesla electric vehicle prices in China are now between 13 and 24 percent below September levels, according to CNN. The basic version of the Model 3 now costs the equivalent of around 32,000 euros, which is less than ever. After the first price reduction, Tesla had assured that there would be no further discounts.

Analysts expect the move will boost sales, which fell sharply in December. Other electric car manufacturers may now be forced to lower their prices in the world’s largest market for battery-powered cars.

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