Price Cut

Tesla plans to produce an average of nearly 20,000 vehicles a week at its Shanghai plant in February and March, with monthly production roughly reaching September levels, according to Reuters.

By fighting for volume, Xpeng's gross margins will take a hit as costs are not materially lower, Edison Yu's team said.

The move is a normal price adjustment for Xpeng as its vehicle production costs have fallen, a spokesperson told CnEVPost.

As Xpeng's production capacity has increased significantly, orders have not grown as quickly in tandem, putting pressure on sales for the company, according to local media.

This means the acceleration of the replacement of new energy star models to the broader fuel car market, accelerating the world's transition to new energy vehicles.

Effective immediately, the starting price of the Model 3 Standard Range version in China after subsidies has been reduced by 15,000 yuan ($2,323) to 235,900 yuan, Tesla announced Friday.

Tesla has set the Model S Plaid at a starting price of RMB 999,990, ($154,600), down RMB 174,910 ($27,044) from the previous price, Tesla China website showed.

Every company has a different position and path, and what Tesla is doing may not be right for Nio, according to William Li, founder, chairman and CEO of the Chinese electric car company.

Tesla says its move regarding the Model Y in China is not a price cut, but the first sale of the China-made version, according to Beijing News.

The China-made Model Y is price-competitive, but the new energy vehicle market is not a zero-sum game, said CICC.