We recently reported about Tesla owners in China heading to local stores to either take advantage of the recent Model 3 and Model Y price cuts, or protest them. Now it seems Tesla has come forward to make it clear that it will not be compensating the protesters who bought their EVs at the end of 2022.
When many folks were seen gathering up at Tesla’s stores in China, the company’s stock began to rise. However, it wasn’t long before it came to the media’s attention that many of the patrons were actually there to protest the recent price cuts.
Tesla has bounced the prices of its vehicles all over the map this year, as financial markets across the globe have been a mess due to the aftermath of the COVID-19 pandemic. While Tesla promises consistent pricing, unlike rival automakers that use franchised dealer networks, it also has the ability to raise and lower its prices at any time, and as often as possible.
Tesla spent much of the year raising prices, as CEO Elon Musk warned of inflation and a potential recession. However, as the year neared its end, the automaker backed those prices off and offered incentives in an attempt to greatly reduce growing inventory.
With all of that said, while Tesla’s price cuts benefit you if you’ve yet to buy, they hurt you if you bought at a higher price. Your new Tesla EV loses value immediately, and, of course, you’re probably jealous that your friends and neighbors can get into the same car as you at a reduced price.
Moreover, the protesters are unhappy about the fact that Tesla encouraged them to buy before the end of 2022 by offering price cuts and incentives, but then offered even better prices after the new year. Some suggest they canceled their orders with other brands to make sure they could buy a Tesla at a discount before the end of 2022.
Despite cutting prices on the Model Y and Model 3 again in China, and significantly, Tesla is shutting down the protesters and will not be compensating buyers who took delivery before the most recent price drop. The automaker is pointing to advancements in engineering as the reason it’s able to reduce prices. According to an article published by City Dwellers, Tesla took to a WeChat group in China that was being used by protesters to make its intentions clear.
Protesters aim to continue pushing at both Giga Shanghai and local stores. Meanwhile, on the flip side, other reports claim the recent price cuts are boosting sales significantly. City Dwellers writes that there may have already been some 10,000 to 30,000 new orders since the new prices were announced.
