Tesla has cut prices in China for the second time in less than three months, fuelling forecasts of a wider price war as demand weakens in the world’s largest car market.
The US automaker also cut prices on its best-selling Model Y and Model 3 electric vehicles in Japan, South Korea and Australia in what a person with direct knowledge of the plan said was part of an effort to help stoke demand for output from its Shanghai factory, its single largest production hub.
The shift is the first major move by Tesla since appointing its lead executive for China and Asia, Tom Zhu, to oversee global output and deliveries that have been at the heart of the company’s recent challenges after falling short of its 2022 delivery target.
Automakers have long turned to incentives to control inventory, but until late last year, Tesla had been able to keep prices steady or even raise them due to strong orders.
But last month, CEO Elon Musk said “radical interest rate changes” had affected the affordability of all cars, new and used, and that Tesla could cut prices to sustain volume growth.
The latest cut in China, along with another in October and recent incentives for Chinese buyers, mean a 13 percent to 24 percent reduction in Tesla’s prices from September in its second-largest market after the United States, Reuters calculations showed.
Tesla slashed prices for all its Model 3 and Model Y cars in China between 6 percent and 13.5 percent, according to Reuters calculations based on the website prices. The starting price for the Model 3 was cut to 229,900 yuan ($33,427) from 265,900 yuan ($38,661).
Grace Tao, Tesla’s vice president in charge of external communications in China, said on Weibo that the price cuts in China reflected engineering innovation and answered Beijing’s call to encourage economic development and consumption.
Deliveries of Tesla’s China-made cars hit their lowest number in five months in December. Tesla’s Shanghai plant, which was expanded last year, also exports vehicles to Europe.
So far, there has been no sign of Tesla cutting prices in Europe, where sales jumped 93 percent in November year-on-year, according to sales data from the research group JATO Dynamics, and in 2022, the Model Y was the top-selling car for the second time.
Tesla also saw its share of Europe’s battery electric vehicle market jump to 18.9 percent in November from 12.3 percent in the same month a year earlier.
Subsidies end
Tesla implemented the price cuts days after Beijing ended a subsidy programme. Softening demand is forcing Tesla and its rivals to absorb the brunt of the move.
China Merchants Bank International (CMBI) said Tesla may have to do more, especially as competition with its Chinese rivals intensifies.
“Tesla needs to further cut prices and expand its sales network in China’s lower-tier cities amid ageing models,” CMBI analyst Shi Ji said.
“We expect new EV [electric vehicle] production capacity in China to outpace new demand in 2023,” Shi said.
But Sun Shaojun, a popular Chinese car blogger, said on Weibo that Tesla’s price cuts were so large that other automakers, including larger rival BYD would have to respond.
BYD recently raised the prices of its best-selling models after the government subsidies ended.
After the price cut, Tesla’s Model 3 was the equivalent of about $1,000 more than BYD’s Seal, a model launched in July. The Model 3 is now the same price as BYD’s best-selling Han EV.
BYD declined to comment on competitors’ pricing but said it would adjust its own according to changes in market demand.
BYD, which sells both plug-in and pure electric vehicles, saw its retail sales in China double in December while Tesla’s fell 42 percent, according to data from CMBI.
Miffed Tesla owners
Some Tesla owners in China who took delivery in recent months and did not qualify for the reduced prices said on Friday that they planned protests at Tesla showrooms in Shenzhen and Henan, screenshots of social media chats seen by Reuters showed.
Tesla had no additional comment. A Tesla spokesperson referred Reuters to Tao’s Weibo post.
The Chinese prices of the Model 3 and Model Y cars are now 24 percent to 32 percent lower than those in the United States, Reuters calculations showed, reflecting a range of factors, including material and labour costs.
Tesla also cut Model 3 and Model Y prices by about 10 percent each in Japan, the first time it had done so since 2021.
In the United States, the Model Y and Model 3 are eligible for up to $7,500 in clean vehicle tax credits as of this month under the Inflation Reduction Act, which became law in August.
In 2021, China accounted for just over a third of Tesla’s overall sales.
Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
