Tesla's Price Cuts In China Stoke Demand — 10,000 Units Delivered In One Day, Says Report

Tesla Inc.’s TSLA steep price cuts in China appear to have produced the desired results.

What Happened: Tesla delivered over 10,000 vehicles on Friday, the day when it announced price cuts ranging from 5.7% to 13.5%, CnEVPost reported, citing a local media outlet. The company was successful in selling more than 200 vehicles per day over the weekend in Ningbo and Zhejiang provinces, the report added.

See Also: Everything You Need To Know About Tesla Stock

The wait times of Model Y vehicles in China have elongated slightly after the price cuts, according to a separate CnEVPost report, citing information available on the Tesla China website. The wait times for the entry-level rear-wheel drive and dual-motor all-wheel drive Model Y vehicles have increased from one to two weeks previously to two to five weeks now.

However, the wait times for the AWD Performance Model Y remained unchanged at one to four weeks.

Both variants of Model 3 vehicles manufactured in China — RWD and all-wheel AWD Performance mode — were also unchanged at one to four weeks.

Why It’s Important: Tesla’s most recent price cuts comes close on the heels of data released by the China Passenger Car Association that showed a 21% year-over-year decline and a 44% sequential plunge in December deliveries to 55,796 units.

Chinese upstarts, meanwhile, reported fairly robust sales for the same period despite the tough COVID-19 situation. The divergence underlined fears that competition may be eating away at Tesla’s market share in China. Analysts termed Tesla’s price cuts as a smart move that would help push volume and preserve and grow market share.

Tesla has recently announced downward price adjustments of different magnitudes in other Asian countries, U.S. and Europe as well.

Price Action: Tesla shares closed Monday’s session 5.93% higher, at $119.77, according to Benzinga Pro data.

Read Next: Tesla Rival Clocks 80% Jump In 2022 Deliveries Amid Disastrous Year For EV Companies