A survey conducted by Dan Ives has revealed a surge in interest in Tesla vehicles in China following recent price cuts.
The Tesla price cuts weren’t well received in China, as hundreds of previous buyers stormed Tesla showrooms demanding the automaker make amends for the abrupt price change. Still, interest in the brand has skyrocketed in China despite the outrage, according to a survey by Dan Ives of investment firm Wedbush Securities.
According to Mr. Ives’ survey, originally reported by Barrons, “Our survey found that 76% of Chinese EV consumers are considering buying a Tesla in 2023, with closest domestic competitor BYD in second place, followed by NIO in third place. This data came just days after China Merchants Bank International announced that Tesla sales had skyrocketed, according to its payment data. Additionally, this renewed interest in the Tesla brand is supported by the order times listed on the Tesla China website.
Order deadlines for the base Tesla Model 3 and Model Y models are extended by about a month, while long-range features for both vehicles have been pushed back even further. And while performance variants of both models have remained fairly unaffected by the new demand, given the recent trend, this pause may not last very long.
The surge in demand has even spread beyond China. Late last week, it was discovered that order times for the Tesla Model 3 and Model Y in Germany were pushed back by a similar amount to their Chinese counterparts. While even here in the United States, wait times for most Model 3 trims extend into the next month, while Model Y customers have reported waits of several months.
Investors have reacted to this latest surge in demand, ending the week with a rare positive move for Tesla stock, which is up nearly 5% on Friday and nearly 15% for the week. It’s no wonder many now believe this is the start of a major recovery for the automaker. However, it should be noted that with the recent gradual decline in CPI, many stocks, including autos, also rallied towards the end of this week.
But aside from Tesla and its customers, perhaps the most significant change that has occurred after the American automaker’s move is the reaction from other brands. In the second half of last year, many automakers followed Tesla’s example and increased prices for the new electric models. Most notoriously, the bastion of affordable electric trucks, the Ford F150 Lightning, saw its pro-trim balloon over $50,000 for the first time. However, many automakers have now been forced to follow Tesla and cut prices to stay competitive.
The most aggressive price cuts by other brands after Tesla were seen in China, where Tesla carried out its price cut first. Still, many analysts expect these price cuts to take place in Western markets in the coming months as the increasingly competitive EV market pushes prices down for the first time in a long time.
William owns Tesla stock but is not invested in Wedbush products nor is his funds managed by the company.
What do you think of the article? Do you have any comments, questions or concerns? Email me at [email protected]. You can also reach me on Twitter @WilliamWritin. If you have any news tips, email us at [email protected]!
Tesla demand in China booms after price cuts
