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.
Momentum Indicator for TSLA turns negative, indicating new downward trend
TSLA saw its Momentum Indicator move below the 0 level on February 23, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned negative. In of the 78 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TSLA entered a downward trend on March 16, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 47 cases where TSLA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TSLA just turned positive on March 16, 2026. Looking at past instances where TSLA's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 329 cases, the price rose further within the following month. The odds of a continued upward trend are .
TSLA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (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 (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 Profit vs. Risk Rating rating for this company is (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 (best 1 - 100 worst), indicating weak sales and an unprofitable 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 (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 (17.857) is normal, around the industry mean (4.039). P/E Ratio (362.222) is within average values for comparable stocks, (285.982). TSLA's Projected Growth (PEG Ratio) (5.479) is very high in comparison to the industry average of (1.728). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.047). P/S Ratio (14.556) is also within normal values, averaging (11.518).
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a manufacturer of electric sports cars
Industry MotorVehicles
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