Tesla rattles electric vehicle sector with more price cuts in China
Justin Sullivan

Tesla (NASDAQ:TSLA) cut prices in China on the Model Y and Model 3 for the second time in less than three months. The electric vehicle maker also reportedly reduced prices in Japan, South Korea, and Australia in a reaction to demand trends.
Tesla (TSLA) has now lowered prices for Chinese auto buyers by 13% to 24% including recent incentives, according to calculations by Reuters.
Looking back, TSLA delivered 55,796 China-made electric vehicles in December, according to the China Passenger Car Association. The tally marked a 44% month-over-month decline and 21% drop from the level of production a year ago. It was also the lowest level of production out of China for the EV giant since July.
Shares of Tesla (TSLA) moved 6.17% lower in premarket action on Friday to $110.34. The session is setting up to be a down day for the EV sector as a whole. Nio (NIO) dropped 6.44% premarket and Li Auto (LI) fell 7.99%. XPeng (XPEV) showed an even bigger decline of 11.26%. Of note, Citi analyst Jeff Chung said the new pricing is likely to affect sales of XPEV's P7 and upcoming G7 model. The losing streaks also continued for Lucid Group (LCID) -2.10% and Rivian Automotive (RIVN) -2.22% during the early session.
As for TSLA, shares are now down 69% over the last 52 weeks.
Sector watch: Tesla falls again but still has a higher market cap than Toyota, GM, and Ford combined