Tesla shares dip, but optimism remains
Tesla reportedly cut the starting price of its Model 3 in China to 231,900 yuan ($32,000) on Sunday, a reduction of 14,000 yuan.
Chinese rival, Li Auto, also cut prices for its models, including the L7, L8, L9 and the newly launched Mega SUV.
Hong Kong-listed shares of Li Auto plummeted to an 11-month low Monday.
Eugene Hsiao, head of China equity strategy at Macquarie Group, said in a research note over the weekend that all of China’s biggest EV makers have one goal in mind — “taking the crown from Tesla,” while noting that it is the most competitive domestic auto market in recent history.