Tesla (TSLA, $338.19) Slashes Car Prices By 12% to 26% In China, To Prevent Tariffs From Hurting Its Chinese Market
Tesla is again set to lower car prices for customers in China. On Thursday, the electric car maker announced that it will be slashing prices of its Model S sedan and Model X SUV by between 12% and 26% in China – even as the ongoing trade war/tariff slapping battle between the U.S. and China makes it potentially costlier to import cars from the U.S.
In May, Tesla slashed prices following China's announcement to reduce import tariff rate from 25% to 15% on U.S.-made cars. But in July, Tesla had to raise prices, after China slapped a higher, 25% tariff rate on cars imported from the U.S. as a retaliation to U.S. tariffs.
As of the latest price cut in China, Model S basic version will come at 782,900 yuan ($113,000) — down from 849,900 yuan ($122,525). Model X’s most expensive version’s price is down to around 1.2 million yuan ($171,000), from 1.57 million yuan ($227,000). Tesla Model 3 is scheduled to be launched in China with a starting price of 540,000 yuan ($78,000).
With the price cuts, Tesla is willing to absorb a “significant” part of the import tariffs in China, as indicated by its spokesperson. It seems that the carmaker does not want to let tariffs get in the way of its potential market in China – the world’s largest buyer of electric vehicles. Tesla’s revenues from China doubled last year to more than $2 billion, and China accounted for almost 20% of the company’s total car sales.
But Tesla might also be planning to curb some of the import tariff costs. It is setting up a factory in China’s Shanghai, which is expected to produce a significant number of vehicles so the carmaker has to potentially rely less on imports to serve the Chinese market.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for TSLA turns positive, indicating new upward trend
TSLA saw its Momentum Indicator move above the 0 level on October 02, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned positive. In 67 of the 83 cases, the stock moved higher in the following days. The odds of a move higher are at 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for TSLA just turned positive on October 06, 2026. Looking at past instances where TSLA's MACD turned positive, the stock continued to rise in 32 of 46 cases over the following month. The odds of a continued upward trend are 70%.
TSLA moved above its 50-day moving average on September 08, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TSLA crossed bullishly above the 50-day moving average on September 08, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +2.72% 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in 263 of 331 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
The Aroon Indicator entered an Uptrend today. In 183 of 236 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
TSLA broke above its upper Bollinger Band on September 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 20 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 72 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TSLA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron SMR rating for this company is 84 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 99 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (16.260) is normal, around the industry mean (8.703). P/E Ratio (330.972) is within average values for comparable stocks, (493.775). Projected Growth (PEG Ratio) (4.273) is also within normal values, averaging (2.450). Dividend Yield (0.000) settles around the average of (0.017) among similar stocks. TSLA's P/S Ratio (12.225) is slightly higher than the industry average of (2.589).
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a manufacturer of electric sports cars
Industry MotorVehicles
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