What's driving Tesla owners in China to protest against the automaker. Know here

  • Tesla has announced consecutive price cuts for its cars in China over the last few months.
People protest at a Tesla showroom in Chengdu, Sichuan, China. (via REUTERS)
People protest at a Tesla showroom in Chengdu, Sichuan, China.

Tesla is facing the wrath of its Chinese customers after announcing a surprise price cut for its electric cars. The consumers who purchased Tesla EVs earlier and didn't receive a price cut benefit have started demanding rebates and credit, claiming that they have overpaid for the electric cars they bought earlier. Reuters reports that around 200 recent Tesla buyers of Model 3 and Model Y gathered at the automaker's showrooms and distribution centres across China over the weekend and protested against the carmaker's decision to slash prices for the second time in three months.

The report states that many of the Tesla owners said that they had believed that prices Tesla charged for its electric cars late last year would not be slashed as abruptly or as deeply as the automaker just announced in a move to spur sales and support production at its Shanghai Gigafactory. They also revealed that the scheduled expiration of a government subsidy at the end of 2022 also pushed many to finalize their purchases.

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In a bid to ramp up its sales in China, Tesla has announced consecutive price cuts for the Model 3 and Model Y EVs in the country over the last few months. The latest came on Friday. With the fresh price cuts, Tesla electric car prices in China are now between 13 per cent and 24 per cent below their September 2022 levels. The price reduction comes after the automaker's sales tumbled in December last year. This forced Tesla to announce a price cut at a time when the demand for EVs is slumping in China.

Following the protest of the Tesla owners, the police in Shanghai reportedly facilitated a meeting between Tesla staff and the assembled EV owners at which the owners handed over a list of demands, including an apology and compensation or other credits.

First Published Date: 08 Jan 2023, 13:43 PM IST
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