Tesla, Inc TSLA Price cuts announced in China on Friday may not have gone as planned, at least considering the initial reactions to the move.
What happened: About 200 Tesla customers who recently bought one of the China-made Model Y and Model 3 vehicles crowded into a delivery center in Shanghai to protest short-time work, Reuters reported.
In layman’s terms, Tesla has issued price cuts ranging from 5.7% to 13.5% for its Giga-Shanghai-made vehicles after announcing a sharp drop in China shipments for the month of December.
The aggrieved customers reportedly protested Tesla’s announcement, suggesting they missed out on the benefits of the price cuts as they bought vehicles in late 2022 to benefit from the government subsidy that was due to expire at the end of the year.
Tesla faced a broader backlash as customers were seen protesting at Tesla stores and delivery centers in other Chinese cities from Chengdu to Shenzhen, Reuters said, citing videos posted on social media. They didn’t take well to the fact that the company announced the price cuts abruptly and hasn’t given any explanation to recent buyers.
During a police-arranged meeting with Tesla employees, customers reportedly demanded an apology, as well as compensation or other credits. The company has reportedly agreed to provide a response to the claims by Tuesday.
A spokesman for Tesla China reportedly told Reuters that the company has no plans to compensate buyers who delivered before the recent price cut.
A Tesla influencer had previously shared video of a crowd thronging at a Tesla delivery center, which also included police, mistakenly assuming there was a scramble to buy cars after the price cuts.
Why it matters: Tesla is facing one of its worst fundamental crises since 2018, when the EV maker faced it Trouble booting Model 3 cars and threatened to run out of money. Demand has slowed due to the slowdown in global…
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