Tesla trades lower as EV auto prices to drop in Hong Kong
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Tesla (NASDAQ:TSLA) lowered prices in Hong Kong as of August 4, following a reduction in April, Hong Kong Economic Times reported.
Shares dropped 0.54% on Monday morning.
The automaker will drop prices about 11.9% on its Model 3 and Model Y, whose prices were unchanged during the decrease earlier this year, the site said, citing the customs website.
The biggest reduction is for Model 3 Performance, dropping to 388,000 yuan ($54,303) from 440,000 yuan. The Model Y long battery life version saw its price drop to 406,000 yuan from nearly 460,000 yuan to 406,000 yuan.
Tesla (TSLA) reported tighter margins for the most recent quarter on lower prices as competition in the EV segment ramps up around the world. Gross margins came in at 18.2% in Q2 vs. 25% a year earlier.
During the earnings call earlier this month, Elon Musk stated the electric vehicle maker will cut prices again if economic conditions worsen.
Last week, Ford said it would push back production of EVs noting that price premiums over internal combustion vehicles fell more than $3,000 in the second quarter and nearly $5,000 in the first half. Meanwhile, GM said itâs bringing back the Chevy Bolt EV amid cost-cutting pressures.
Shares of TSLA are down 5.5% over the past 12 months and up 145% year-to-date. The stock is down around 9% since the company reported earnings earlier in July.
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