Tesla shares have shed more than $530 billion in market value this year.
Tesla (TSLA) – Get Free Report shares extended declines Wednesday after the carmaker unveiled another round of price cuts in China, adding to concerns over near-term demand in world’s biggest EV market.
Tesla is now offering further discounts to China-based buyers of its Model 3 and Model Y sedans, provided the purchase is completed by the end of the year. The incentives follow both a price cut unveiled in early October and reports this week that Tesla will reduce output at its key Shanghai factory.
The move would mark the first time Tesla has voluntarily lowered output levels since the factory was opened in 2018, although Covid restrictions and scheduled maintenance clipped production earlier this year.
China’s recent loosening of Covid restrictions is expected to boost growth in 2023, but the damage from its draconian policies has left a lasting scar on the world’s second-largest economy, with data today indicating the biggest year-on-year decline in exports in nearly three years.
That said, Tesla’s October price cuts certainly provided a boost for November, sales, with overall shipments rising more than 90% from last year to a record 100,291 vehicles, according to data revealed Monday by the China Passenger Car Association.
Tesla shares were marked 2.01% lower in pre-market trading to indicate an opening bell price of $175.76 each, a move that extends the stock’s year-to-date decline to around 55%.
Short interest in Tesla shares remains elevated, as well, with bets around the group pegged at around $12 billion, according to recent data from S3 Partners, a figure that represents around 2.65% of the group’s outstanding shares.
