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After lowering prices, Tesla cars have become extremely attractive to Chinese consumers. According to a Wedbush survey, 76% of respondents would choose Tesla vehicles for purchase in 2023.
On January 6, Tesla lowered the prices of its cars in China, making them extremely attractive. So Wedbush analyst Dan Ives conducted a survey of 500 Chinese EV buyers in mainland China to evaluate the real impact of this, Barron's reports. The result showed that 76% of those surveyed are considering buying Tesla vehicles in 2023.
“Our survey found that 76% of EV Chinese consumers are considering buying a Tesla in 2023, with the nearest domestic competitors BYD in second place followed by NIO in third place,” wrote Ives in a research report.
In its survey, Wedbush pointed to the recent decline in Tesla car prices, and 70% of respondents answered that it had a positive impact on their decision to likely purchase Model Y.
“[The] survey says on Tesla’s recent price cuts …[they’re a] huge success story so far,” added Ives. “Nearly 70% responded that the most recent price cuts have positively influenced their decision to more likely purchase a Tesla Y, proving the price cuts have been a home-run success out of the gates.”
At the moment, it is not possible to say how the decline in Tesla car prices has affected the growth in orders in the US, since data is not yet available. However, this is expected to have the same effect as in China. Early signs point to a similar reaction to the price decline in the US that Ives found in China. Automotive and car buying information provider Edmunds wrote that Model Y was the most popular car users explored on its website after the price cut. Model 3 was the 11th most popular car, up 36 spots.
Wedbush recommends buying Tesla shares. Its target price is $175. Overall, about 64% of analysts covering Tesla stock recommend a buy. The average analyst price target is about $214 per share.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.