tesla Stocks fell in pre-market trading on Monday, while Chinese stocks lee auto Shares plunged to 11-month lows after both companies slashed the prices of electric vehicles in various markets amid intense competition.
US EV giant Tesla has lowered its starting price. chinese model 3It fell by 14,000 yuan to 231,900 yuan ($32,000) on Sunday, according to reports. Reuters. The report also said it had reduced prices in other major markets, such as Germany.
Meanwhile, Li Auto announced that it has reduced the prices of its models, including the L7, L8, L9, and the newly launched MEGA SUV. Weibo account on monday. According to reports, the price of the model was reduced by up to 30,000 yuan.
CNBC checked the Tesla and Lee Auto websites on Monday and found that their vehicles were listed at the latest prices.
Hong Kong-listed Li Auto shares fell 8.3% during Monday trading, hitting an 11-month low, while shares of other Chinese EV makers also fell. Nioh Although it fell by 1.7%, Spen 1.9% off BYD It fell by 0.2%.
The price cuts come as competition in China’s EV sector intensifies, with local automakers aiming to outsell U.S. rival Tesla with flashy technology and competitive pricing.
Eugene Xiao, head of China equity strategy at Macquarie Group, said in a research note over the weekend that China’s biggest EV makers all have one goal in mind: “seize the throne from Tesla.” He pointed out that this is the most important thing. competitive domestic automobile market in recent history;
Xiao said the price cuts are just one aspect of a range of strategies China’s leading EV companies are taking to survive the “coming wave of industry consolidation.”
Chinese smartphone maker Xiaomi launched its SU7 electric car earlier this month, which costs about $4,000 less than Tesla’s Model 3. The company also claimed that the new vehicle’s range will be increased.