Tesla shares are trading lower after Xiaomi priced its SU7 EV below Tesla's Model 3 in China.
Portfolio Pulse from Benzinga Newsdesk
Tesla shares are trading lower following the announcement that Xiaomi has priced its SU7 electric vehicle (EV) below Tesla's Model 3 in China, indicating increased competition in the EV market.
March 28, 2024 | 1:33 pm
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Tesla's stock is trading lower due to increased competition in the Chinese EV market, as Xiaomi prices its SU7 EV below Tesla's Model 3.
The pricing strategy of Xiaomi for its SU7 EV directly competes with Tesla's Model 3 in the Chinese market. This move by Xiaomi could potentially attract price-sensitive consumers, thereby affecting Tesla's market share and profitability in the short term. The immediate negative reaction in Tesla's stock price reflects investor concerns over increased competition.
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