Tesla (TSLA) to cut prices in Hong Kong

The Hong Kong Economic Times reports Monday that U.S. electric automaker, Tesla (NASDAQ: TSLA) will be cutting the prices of multiple variants of their Model 3 and Model Y vehicles in the country starting August 4th.

According to the report, the EV giant will implement discounts ranging from 6% to 11.9%.

Tesla shares have fallen close to 11% since the electric vehicle maker reported its second-quarter results, reaffirming their strategy to place growth over margins and hinting that there may be more price cuts in the future.

As some OEMs scramble to keep up with the changes, some are refusing to join a price war.

Davide Grasso, CEO of Maserati, spoke on Tesla’s previous price cuts Friday saying, "We would be completely strategically off-balance if we did that".

"Our goal is to make the best cars we can make for somebody to appreciate it and pay the price." he added.

As supply chain tensions ease, particularly concerning semiconductors that have significantly affected global car production, analysts express concern that automakers may hastily lower prices to safeguard their market share and to compete with Tesla, which has already implemented price reductions in various markets.

Shares of TSLA are up 0.31% in pre-market trading on Monday.

By Michael Elkins | [email protected]

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