The electric car market is very competitive

The American electric car giant Tesla spares no effort to strengthen its position in the Chinese electricity market. By the end of March, the company announced a series of promotions aimed at increasing sales Model 3 and Model Y in China.
Chinese buyers of existing Tesla stock will be eligible bonuses up to 34,600 yuan, or about 4,430 euros. These benefits include an 8,000 yuan (€1,024) discount on car insurance products in partnership with Tesla. In addition, customers will be able to take advantage of a discount of 10,000 yuan (1,280 euros) if they choose an additional body color. To make it easier to access these benefits, Tesla is also offering discounted, time-limited financing plans that allow you to save up to RMB 16,600 (€2,125) on the purchase of a Model Y.
It will be recalled that BYD, which overtook Tesla to become the world’s leading manufacturer of electric vehicles in the fourth quarter of 2023, also lowered its prices last February. Finally, Geele, another Chinese manufacturer and competitor to BYD, last week cut the prices of its most popular models in the Celestial Empire. This drop reached 15% for the Galaxy L6.

Tesla is facing stiffer competition

The announcement comes amid declining demand and increased competition in China’s EV market. By adjusting your prices, Tesla is looking to maintain its competitiveness against very fierce rivals such as BYD, its main rival in the world’s largest car market.
Tesla, which presented financial results for the last quarter of 2023, had revenue of $96.773 billion, which was 19% more than the previous year. however, operating margin decreased, fell from 16.8% to 9.2%, illustrating challenges related to operating costs, R&D projects and the Cybertruck launch. Despite these issues, Tesla delivered more than 1.85 million electric vehicles worldwide in 2023, closing in on German premium brands such as BMW and Mercedes.
Tesla continues to adjust its strategy in China to adapt to market developments. These measures demonstrate the company’s flexibility in a key country for its global expansion.

Fierce competition in the Chinese market of electricity stimulates innovation and prompts manufacturers to rethink their approaches to attracting consumers.

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