Tesla releases higher-end Model 3 with higher price, longer driving range (Video)

we are looking at shares of Tesla falling today into the red off just around five and a half percent more price cuts and also worry over competition in China is Weighing on the stock the EB giant cutting the price of its Model S and model X in the US and also in China Tesla is also unveiling its revamped model 3. it's now on sale in China but with a steeper than expected price tag starting around the equivalent of 35 800 bucks and Akiko this is just a continuation of what we've seen play out now over the last several months we heard this warning from Elon Musk most recently in their last earnings call saying that more price Cuts may be necessary we're seeing the fact that demand obviously a concerned here for Tesla for its competitors as we talk about the fact that people simply are pulling back on their spending they don't have the excess cash to go out there have as much money to buy an EV so here we are again with Tesla changing the price of its Model S and model X for the seventh time this year yeah I mean it's worth separating the two stories I think Shauna because when you think about what's happening with the model X that price cut was made right to come within that cap of the IRA so that car is in fact eligible for the federal subsidies which makes it a little more affordable although it's higher than the model 3 and the model y so that's largely seen as the big motivation behind the cuts there the model 3 though is probably a bigger concern when you consider the model 3 Model y make up such a big chunk of the revenue and deliveries for Tesla and a lot of investors were expecting that new model 3 coming out to be at a lower price point to be able to compete with the byds with the other cards especially in China where the competition has been so steep so so that's a big concern for China worth noting though I mean Tesla doesn't change a lot of models or churn out a lot of models this is the first time these turned out an update on a Model since the the update on the Model S a few years ago the model y of course in 2020 was that the first real sort of rollout of a new model that we have seen in some time so it is getting a lot of attention but disappointment here in terms of the pricing for that car even though the range is pretty incredible when you stack it up against some of the other Chinese EV makers yeah it certainly is but at least for Tesla's move today we're seeing a negative reaction off just over five percent