new sales lead
This is the first major move by Tesla since appointing Tom Zhu, its chief executive for China and Asia, to oversee US output and sales.
Tesla last week cut prices in China and other Asian markets. The price in China for the Model 3 or Model Y was down 13% to 24% from September after the recent move, with previous price cuts announced in October and more recent incentives, Reuters calculations showed.
Tesla has also cut prices in South Korea, Japan, Australia and Singapore.
Analysts had said China’s price cut would boost demand and deepen pressure on its rivals there, including BYD, in what could become a price war in the biggest single market for electric vehicles.
That pressure can build up in Europe as well.
Tesla’s Model 3 was the best-selling electric vehicle in Germany last month, followed by the Model Y, which surpassed Volkswagen’s all-electric ID.4. Volkswagen recently raised the price of its entry-level ID.3, putting it on par with the now discounted Model 3.
Tesla missed Wall Street estimates for deliveries in the fourth quarter. Full-year growth in deliveries was 40%—less than Musk’s own forecast of 50% growth.
Last month, Musk said a “radical interest rate shift” had changed the industry-wide outlook and that Tesla could lower pricing to maintain volume growth, which would result in lower profits.