Tesla will not be present at this year's Shanghai Auto Show. Know why

The Shanghai Auto Show will start on April 18 and this year, it will not host Tesla. The EV company's Shanghai-based representative confirmed that Tesla will not attend the show, however, the individual did not state any particular reason for this decision. The electric vehicle brand attracted unwanted attention back in 2021 when a Tesla Model 3 owner climbed atop a displayed EV and shouted that her father, who was driving their Tesla, almost died because the electric car's brakes failed.

This protest was captured in the form of a video and it soon became viral. Following this, Tesla faced numerous criticism which forced the company to issue a public apology. The EV maker, nevertheless, did not acknowledge any defect in the electric vehicle.

Currently, Tesla is on a price-cut spree in China and globally with the latest one announced on March 14 which will be implemented in Europe, Israel and Singapore. The company has been reducing the prices of its EV models such as Model 3 and Model Y since January. Till now, the prices of these electric vehicles have come down between the range of six per cent to 13.5 per cent.

The cost fluctuations, as per a report by Bloomberg, are triggering a price war in the world's biggest automobile market. With multiple EV players now in the arena, this can make China's EV market extremely competitive.

Last year, Tesla's Shanghai Gigfactory produced 7,11,000 units of electric cars which was 52 per cent of its worldwide output. The EV maker also announced earlier this month that it will establish a new battery factory in Shanghai to produce its Megapack large-scale energy-storage unit. The construction of this facility will start in the third quarter of the current year and production will start in the second quarter of 2024.