Tesla has reduced prices for its Model Y and Model 3 electric vehicles in China, Japan, South Korea, and Australia to increase demand for output from its Shanghai factory.
This marks the first major move by Tesla since appointing Tom Zhu, its lead executive for China and Asia, to oversee global output and deliveries. The price cuts came after CEO Elon Musk stated that "radical interest rate changes" had affected the affordability of all cars and that Tesla could cut prices to sustain volume growth. The cuts also follow the end of a subsidy program in Beijing, which has led to a decrease in demand and the need for Tesla and its rivals to absorb the impact.
