Tesla is intensifying its efforts to boost sales in China by significantly reducing prices across its lineup of electric vehicles (EVs), aiming to better compete with local rivals. The company slashed prices by nearly $2,000 for its latest Model 3, bringing it to approximately $32,600, and similarly reduced prices for the Model Y. This move mirrors Tesla’s recent price cuts in the United States, where it decreased prices for Models Y, X, and S cars by $2,000 and discounted its self-driving technology.
Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) reported better-than-expected sales for the second quarter, driven by increased demand for AI-related technologies from companies like Nvidia and Apple. This highlights the growing importance of semiconductor manufacturing in powering various technological advancements.
Tesla (Credits: Reuters)
However, Tesla faced setbacks as well, as it issued a recall for 3,878 Cybertruck electric pickups due to a potential safety issue with accelerator pedals. This recall affected Cybertruck vehicles produced between November 13, 2023, and April 4 due to the risk of accelerator pedals becoming dislodged and causing accidents, as reported to the U.S. National Highway Traffic Safety Administration (NHTSA).
The year 2024 has been challenging for Tesla, with its stock price hitting a new 52-week low following a series of negative developments. Deutsche Bank analysts, among others, downgraded their ratings and price targets for the company, contributing to the stock’s decline. Additionally, CEO Elon Musk’s announcement of layoffs affecting at least 14,000 employees added to concerns about Tesla’s ability to meet EV demand, according to analysts from JPMorgan.
Despite its struggles, Tesla continues to navigate the competitive landscape of the EV market, implementing strategies such as price adjustments to stimulate sales. However, challenges persist, including safety recalls and concerns about demand, highlighting the complexities facing the company as it strives to maintain its position in the rapidly evolving automotive industry.
