Shulou(Shulou.com)11/24 Report--

CTOnews.com, March 14, according to a report by Morgan Stanley, Tesla needs further price cuts to stimulate demand in the Chinese market again. The company believes that Tesla's recent price cuts did not complete the task, but prompted more competitors to also cut prices, which is good for consumers.

Tesla has used price cuts to stimulate demand and make its products more competitive in similar models in a number of markets, including China and the United States. Tesla has adjusted the prices of his vehicles several times this year, sometimes rising and sometimes falling, with the biggest drop at the beginning of the year. There were also price cuts at the end of last year, helping Tesla get close to the 2022 delivery target.

Still, Morgan Stanley's China team says they don't think this round of price cuts has been so successful because of the ongoing price war. Consumers expect the price war to continue, which will lead to further price cuts across the industry. "We expect a full-scale price war to encourage consumers to stay on the sidelines and wait for more promotions / discounts," the company said. The price elasticity of vehicle demand is declining because consumer price expectations have also been falling, which could affect sales recovery and orders that should have been increased in March. "

Tesla sold 74402 vehicles wholesale in China last month, up more than 26% from January. CTOnews.com noted that Morgan Stanley reiterated its "overweight" rating on Tesla's stock and a target price of $220.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.