News JVTech Elon Musk and Tesla did not foresee this counterattack from Asia
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Last week, Tesla made the choice to considerably lower the price of its electric cars. A decision which did not fail to react everywhere in the world, in particular in Asia where the car manufacturers decide to do the same.
Tesla lowers its prices and makes the competition react
A little over a week ago, we explained to you that Tesla had chosen to considerably lower the prices of its electric cars – in China and then all over the world. An understandable decision, both the company led by Elon Musk lost its stock market listing following decisions made by the multiple CEO – with Twitter in particular. The objective of this price drop: to boost sales and continue to establish its domination on the world market.
As a reminder, in 2022, Elon Musk’s company delivered 1,313,851 units, which allowed it to keep its place as the world’s number 1 electric car ahead of the Chinese giant BYD – which continues to threaten the position of the American manufacturer. But now, in addition to the effect on sales, these changes to the price list have (and will have) consequences on the market. And as one might suspect, Asian automakers were quick to react and lower their prices too. This is particularly the case of Xpeng and Vinfast which are the first two to follow Tesla’s strategy.
Xpeng and Vinfast want to put spokes in the wheels of Tesla
If you follow the news related to electric cars, you probably know that asian automakers are starting to become big chunks in the market. The best known of them is certainly BYD, which should soon overtake Tesla if the trends seen in 2022 are confirmed in this financial year. But we’re not here to talk about BYD, but rather Xpeng and Vinfast, which have both announced lower prices on several of their models.
At Xpeng, the price reductions concern the P7 sedan, but also the P5 and even the G31 SUV – 30,000 euros, 22,000 euros and 20,000 euros respectively. The spokesperson for the brand explains: “Adjusting prices is part of our approach to making smart electric vehicles accessible to more customers, a mission we set in place when the company started. »
As for the Vietnamese brand Vinfast, the strategy is slightly different since the brand has chosen to implement several temporary rate reduction programs – therefore no definitive reduction. One of the automaker’s spokespersons explained: “As a new brand, when others reduce their price, we have to offer promotions to ensure VinFast’s competitiveness. We are considering several promotional programs which we will announce soon. »
If Tesla’s price drop hadn’t been received in the best way – in China in particular – the other manufacturers of electric cars seem, all the same, to want to follow the trend imposed by Elon Musk and his followers. Good or bad decision? Answer to the next episode.