Protest at a
Tesla showroom in Chengdu.
Reuters
- Tesla owners in China have gathered at delivery centers and stores to protest the price cuts, according to Reuters.
- Videos emerged showing people shouting and carrying makeshift supplies at Tesla stores.
- The electric vehicle maker slashed prices in China for the second time in three months, with some missed.
Tesla is facing backlash in China from hundreds of owners who protested outside of delivery centers and showrooms after missing out on a big discount opportunity, a report says.
Reuters reported that about 200 people who had recently purchased Model Y and Model 3 cars gathered outside a Tesla delivery center in Shanghai on Saturday, demanding discount because now they cost less than what they paid for.
Tesla slashed prices in China for the second time in three months on Friday as it struggled to sell. Prices are 13% to 24% lower than in September. A Tesla can be up to 43% cheaper to buy in China than in the US, according to Bloomberg.
Elon Musk’s company also slashed prices in Japan, South Korea and Australia in a move to stimulate demand for vehicles made at Tesla’s largest factory. a source told Reuters.
A video by Reuters also shows demonstrations at Tesla’s Chengdu store. The news agency verified the store’s location but did not determine the date of the protests.
Is different video posted on saturday appears to show further protests at a Tesla store in Xiaoshan, with several people seen shouting and one holding a placard. Insiders could not confirm the store’s location.
Electric vehicle makers have been forced to make abrupt price changes in recent months as major automakers up their game and the global economy slows.
Early last year, Tesla rival Rivian raised prices in response to rising supply chain costs, even for customers who placed orders, but finally back.
Ford also F-150 Lightning price increase electric truck up to $8,500 in August, blaming a “significant increase in the cost of materials.”
But Tesla’s price cut in China is more a reflection of waning demand due to years of COVID-19 shutdowns, as well as a falling Tesla share price and big bets on a Shanghai factory.
Tesla did not immediately respond to Insider’s request for comment.
