Shares of electric car manufacturer Tesla lost 29 percent in the first quarter of 2024.
China can develop electric vehicles much cheaper, with the advantages of economies of scale and proximity to raw materials.
Manufacturers, disturbed by this situation, pressed the button to produce cheaper cars. In addition, brands want to participate in the competition by reducing the prices of existing models.
Industry officials say that the only way to compete with Chinese manufacturers is with affordable vehicles.
Tesla, which had previously made discounts in China and Europe and was criticized by its competitors, had made price reductions many times recently.
Tesla shares have experienced a serious decline in the last 3 months and lost 29 percent of their value in the January-March 2024 period.
This was recorded as the largest quarterly decline since the end of 2022 and the third largest decline since the company went public in 2010.
One of the biggest reasons for the decline is that investors think that Tesla can no longer maintain its leadership in the electric vehicle market.
Additionally, it seems that Tesla is having a hard time against its Chinese competitors. BYD became the world electric vehicle production leader in 2023.
In addition to all this, the fact that Tesla's model range was old and Cybertruck did not receive the expected attention also contributed to the decline.
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