Most of us remember the electric vehicle price war, a move that left several electric vehicle stocks reeling as a result. Well, it’s not exactly over, as EV manufacturer Tesla (NASDAQ:TSLA) is moving to start up some new incentives, at least in China. That’s not being taken well by investors, however, who sent shares down fractionally in Friday morning’s trading.
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Reports note that Tesla plans to draw in Chinese consumers with several new incentives, including discounts to cover insurance costs. Those who buy in on a Model 3 or a Model Y could land as much as 34,600 yuan, or roughly $4,807.69, in incentives. Of course, those things depend on several key factors.
For instance, the insurance incentive (up to 8,000 yuan) is available with insurance dealers who already have a partnership effort with Tesla. Further, there’s another 10,000 yuan available, but the buyer has to agree to get a new paint job. When asked about the availability of Tesla models in China, one rep noted that it was “limited.”
Everyone Else Pays Full Price
The move to expand incentives in China comes at an odd time for Tesla. It recently concluded its Model Y promo event in the United States. A February discount is now gone with the leap month, and prices return to normal. However, even this represents a note of mercy; originally, Tesla noted that prices would “…increase by $1,000 or more” starting the first day of March. They did rise but to normal levels as opposed to an increase beyond that. It might not exactly be a good move to cut prices for one area and leave everyone else paying full price.
What Is a Fair Price for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 19 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 3.28% rally in its share price over the past year, the average TSLA price target of $214.44 per share implies 6.37% upside potential.
