Shares of Tesla Inc. fell more than 5% Monday as the electric-vehicle maker announced a new round of discounts and price cuts in China and the U.S.
Discounts in China and the U.S.
Tesla is offering incentives of up to about $5,000 through March on Model 3 and Model Y vehicles in inventory in China. These incentives include insurance discounts, paint change discounts, and preferential financing plans on select models.
In the U.S., Tesla is providing 5,000 miles of free use of Superchargers on select trade-ins through the end of March. This offer is in addition to transfers of Full Self Driving beta and free lifetime Supercharging incentives.
Recent Developments
Despite the discounts, Tesla also reversed a temporary February discount on some Model Y versions in the U.S. Car discounts and incentives, which had dwindled in recent years, have returned in recent months, contributing to slightly better-than-expected car sales in the U.S. in February.
Market Performance
Tesla's stock has seen a decline of nearly 4% over the past 12 months, while the S&P 500 index has seen gains of around 27%. The gap has widened in recent months, with Tesla shares down 23% so far this year compared to an 8% increase for the broader index.
Future Plans
Tesla is focusing on developing a next-generation EV with plans to start its production in the second half of next year. Despite challenges from local rivals and concerns about mass adoption of EVs, Tesla remains committed to innovation and growth in the electric vehicle sector.
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