Tesla (TSLA) is raising prices in many regions on the first day of the second quarter.
In the United States, Tesla has increased the price of its popular Model Y SUV by $1,000 on all three trim levels. Tesla did the same in China, where the Model Y Long Range version increased by 5,000 yuan ($675) to 304,900 yuan, and the Performance version also increased by 5,000 yuan to 368,900 yuan.
Both price increases were expected as the company used price incentives to move vehicles before the first quarter ended on March 31st. Tesla's U.S. website has been warning buyers for weeks that prices would rise on April 1. Tesla also raised the price of its Model Y by 2,000 euros in some parts of Europe in late March to boost sales.
Meanwhile, Tesla's rivals in the United States and China are lowering prices to stimulate demand in those markets. Chinese EV maker NIO on Monday announced via its Weibo account a number of offers including battery replacement benefits, self-driving software subscriptions, NIO phones and other merchandise to encourage more buyers to purchase its EVs. Announcing incentives. Additionally, XPeng has extended the existing price reduction on the G9 SUV by 20,000 yuan ($2,700) until April 30th.
Tesla's move today comes as the automaker is expected to announce first-quarter global shipment numbers tomorrow. Tesla has had a tough first quarter so far in terms of stock performance, and there are growing concerns that a weak first-quarter report will cause more trouble for shareholders.
Analysts expect Tesla to deliver 453,964 vehicles in the first quarter, according to Bloomberg consensus estimates. That number would be down 6% from the fourth quarter, but perhaps more worryingly, it would be lower than the roughly 423,000 cars the company delivered a year ago.
Deutsche Bank believes this is the case, with first-quarter deliveries of 414,000 vehicles, well below analysts' expectations.
Even Tesla bulls like Wedbush's Dan Ives find the Chinese market alarming.
“Increasing EV competition and a prolonged price war have made this key market extremely difficult, and the biggest and most worrying issue for Tesla (and its investors) remains China,” Ives said last week. I wrote it in a memo. “[Overall negativity is] That's no surprise, as growth has slowed and profit compression with China has become a nightmare. ”
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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