Discounts were smashed by Chinese car owners’ rights protection. Is it wrong for Tesla to cut prices?

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Tesla (Tesla) has had a lot of negative news in recent days. Musk bought Twitter, snubbed Tesla, and the stock price continued to plummet, and he was scolded by Singaporean Chinese billionaire Liao Koyuan . A special car owner rights protection event.

It is said that Tesla announced last Friday (January 6) that the price cuts of Model Y and Model 3 in China ranged from 6% to 13.5%. new low price. The price reduction is not aimed at the Chinese market. South Korea, Singapore, Japan and Australia all have price reductions, but for Chinese consumers, “still hurt their feelings” because Tesla has always been “arrogant”. In 2016, Musk told Employees emailed that, except for display items or defective goods, all new cars produced by the original factory should not be discounted. “Make it absolutely clear to customers that Tesla will do the right thing.”

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However, since September last year, Tesla has launched six consecutive discounts and price cuts to stimulate sales in China. In December last year, Tesla offered US consumers another $3,750 discount, and then announced on Christmas Eve that it would double the discount to $7,500 . However, when the news of price cuts came to the fore again, Chinese car owners still couldn’t accept it, and we know that Chinese consumers, especially those who can afford Tesla, are not good men and women. What can’t be seen in other markets can be staged in China. , in Beijing, Shenzhen, Chengdu, Xi’an, and Shanghai, there were “price reduction and rights protection” actions.

A Weibo netizen “Not Zheng Xiaokang” pointed out that gifts, snacks, and water from Tesla stores were robbed, and even small electric cars were destroyed. Wang Guangxing, an employee of the Chinese automaker BYD, was found to have participated in a rights protection protest at the Tesla Delivery Center in Xi’an. He was accused of being the mastermind. He issued a statement online, saying that his wife is a Tesla owner, and that day he represented his wife at the protest. The protest has nothing to do with my position in the BYD Xi’an Planning Institute, and I deny deliberately defaming and blackening Tesla. His statement aroused heated discussions among netizens. Some people accused price reduction and rights protection as rogue behavior. Weibo netizen “Electric Box Principal” pointed out that even the coffee machine was removed from the Tesla store, the sales staff were scolded, and the protesters were still in the store. It’s a disgrace to sing the national anthem inside.

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Many analysts pointed out that Tesla’s price cuts reflect a serious problem that the company is facing—the golden period of growth has passed. The “Financial Times” pointed out that for Tesla investors, in the past, they were worried about how the company would increase production capacity to meet market demand, but now they are concerned about where to find enough customers to justify a substantial increase in production. Philippe Houchois, global auto analyst at Jefferies in London, described it as a “perfect storm”: increasing supply, falling demand and intensifying competition, the global auto industry may already be on the verge of a severe recession. Wedbush analyst Dan Ives pointed out that Tesla’s real test will appear in the first quarter of this year. Experts will pay attention to whether the company will return to the “tsundere” route, no longer cut prices easily, or follow the tradition The old road of the automobile industry.

Deutsche Bank analyst Emmanuel Rosner believes that Tesla’s price cut is just the beginning to balance supply and demand. Ivan Drury, an analyst at auto industry website Edmunds, estimated that even if Tesla does not cut prices, it may still offer promotions such as maintenance or charging services. He pointed out that Tesla once broke many rules in the auto industry and was a disruptor of the industry, but now it has fallen into the same predicament as all automakers. Investors should realize that Tesla is no longer the leader, but only Just another car factory.

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