"The price war triggered by #Tesla has sucked in more than 40 brands, shifted demand away from older models and forced some automakers to curb production of both #EVs and combustion-engine cars, or shut factories altogether.

At the same time, pay cuts and lay-offs in the #AutoIndustry and its suppliers are hitting living standards.. "

Insight: #China's #AutoWorkers bear the brunt of #PriceWar as fallout widens | Reuters
https://www.reuters.com/business/autos-transportation/chinas-auto-workers-bear-brunt-price-war-fallout-widens-2023-09-05/

II. #FinancialMarketPredation: A predator tricks the competitors' *creditors* into thinking the predator has a new way to cut costs. The creditors refuse to loan the prey companies the money needed to survive the #PriceWar, and the prey drops out of the war.

9/

It's called the Law of Diminishing Returns & Tesla isn't immune.
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The Chinese auto market accounts for 30 to 40% of Tesla's profitability, #MorganStanley estimates. Its biggest competition there, #BYD (whose stock has declined since the price war began), has also introduced discounts. But waning reactions to those also "mark another climax of the price battle."

#Tesla's #PriceWar is starting to backfire | #EVMarket #ElonMusk
https://www.msn.com/en-us/money/companies/teslas-price-war-is-starting-to-backfire/ar-AA18C1JD

#Tesla has started the #pricewar 10 days ago, now #China is responding... #Xpeng slashed its prices by ca. $22'000 (approx. 13%)...

This is good news for consumers but it will definetly hurt manufactures...