Tesla slashing prices again in China the move by the automaker sparking concerns of fueling the bruising EV price War meanwhile Goldman Sachs recommends Toyota motor giving the company's strong EV potential amid the competitive market but let's focus in on Tesla and what is going on there uh we already of course have seen a lot of back and forth price Cuts in China sparked initially by Tesla it looks like that they are cutting the priciest models of their various Vehicles their long range and performance versions of the model yacht lie are being a cut according to its weibo accounts model yeah at the end of the day here for model Y and the SUV that they've tried to continue to make sure that they have traction with especially at that upper end as you were mentioning within China highly competitive market where there's a lot of EV plays that is exhibited through some of the targets that Toyota has which was one of the reasons why Goldman Sachs was very bullish about the potential there saying that the tar targets that they've set forth one and a half million by 2026 in terms of their EV potential there and then three and a half million by 2030. now if you're thinking all right well what about Tesla now internationally Tesla has been looking at figures at least as of last year in 2022 about 1.3 million so all of these things considered in the markers that Tesla has already hit versus some of the targets that a Toyota has in China and and more broadly as well but then additionally the players from Ford the plays from GM there's going to be a ramping up of so much of the production of electric vehicles the larger question is for the pricing strategy and that gets us back to Tesla they may be looking through the consumer environment right now and just saying how do we slash prices enough to make sure that we're in garages or that we're in driveways to pull people into an ecosystem and then the job is just retention and keeping them there hopefully um and that could come in a myriad of different ways but for Tesla at least that seems like what's that play with the strategy right now too yeah although there are questions about to your point about what it's going to mean for the margins here and at least one analyst over at everquare isi said that these Cuts in China could pre-sage Cuts in Europe and in the United States as well and remember we already saw Tesla's production numbers coming out of China's shipments coming out of China down 31 percent in July so that's something to keep in mind too when we're looking at all of these Dynamics and as you mentioned the competition in the Chinese EV Market is probably the fiercest of any EV Market in the world right now there are a lot of homegrown producers that it's just a totally different Dynamic than it is here and one of the parts of that Dynamic is also government driven too there are mandates now that have been steadily increasing for the past few years for auto manufacturers to have to produce and sell a certain amount of electric vehicles and that moves higher every single year until they get to a set percentage that the government could either stand by or move even higher from that point but it's all in order to have more of an environmentally conscious landscape especially when it comes to Auto production and what had you know previously and historically all around the world been an issue within the internal combustion engine vehicles and the contribution to some of the greenhouse gas emissions there too right
