News Analysis
Tesla’s mega plant in Shanghai faces strong headwinds moving into 2023 due to trends favoring the localization of global supply chains amid fierce competition with Chinese automakers.
The year didn’t start on a good note for the automaker when earlier this month, disgruntled Tesla owners protested at its various showrooms around China, upset that they missed out on large price cuts now being offered.
The sudden price cuts are part of Tesla’s efforts to maintain competitiveness amid declining sales of its Model 3 and Model Y, which dropped by nearly 20 percent in China after two rounds of price adjustment last October and this January, respectively….